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Budget 2011: Chancellor moves to close online VAT loophole
Announced in the Budget: The Low Value Consignment Relief (LVCR) threshold, below which goods imported from outside the EU are relieved of VAT, will be reduced from £18 to £15 from 1st November 2011. It seems the Government is keen to limit this relief and prevent it from being exploited., and a further reduction in the 2012 Budget has not been ruled out. This change particularly impacts the supply of low-value items which are currently available on VAT-free internet deals, such as CDs, DVDs, contact lenses, health supplements and more.
Full official details of this change can be found in the HMRC’s Tax Information and Impact Note. You can read The Guardian’s take on the news and how it will affect consumers here.
