Chancellor lowers LVCR threshold
The Chancellor has lowered the threshold relating to low value imports from suppliers outside the EU from £18 to £15, although many are concerned that he has not gone far enough.
While it’s a step in the right direction, industry groups fear the move will not prevent large companies taking advantage of the Low Value Consignment Relief (LVCR) loophole.
The Forum of Private Business (FPB) was quick to issue a statement after the Budget: “In particular, the organisation is concerned that simply lowering from £18 to £15 the threshold price of goods shipped via the Channel Islands on which no VAT is payable will not stop large companies exploiting LVCR."
Audrey Fearing, VAT partner at Ernst & Young, also voiced her concern:
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some clarification
I understood that where VAT was due it had to be collected from the purchaser. The point of the relief was the disproportionate cost of collection. don't see anything in the budget that will change this. But perhaps I have misunderstood it?
Which century do they live in?
Another AccountingWEB member has already pointed some of this out, but with the average CD going for around £6-7, and DVDs retailing at around £12-15, it will only be the big double-CDs, Blu-Ray and box set releases that are affected by the reduction.
And don't most people get their media online these days?