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VAT-free iTunes music for UK customers?

updated 09:25 am EST, Mon January 16, 2006

VAT-free iTunes music?

Apple is reportedly looking to so it sell music to British customers--without charging the nearly 18 percent value added tax (VAT). That could reduce the price of iTunes music from 79p to 67p, according to the report.

The move mimics that of other UK retailers, such as Tesco, Asda, Britannia, HMV, Amazon and Woolworths, which have "set up delivery operations in the Channel Islands to exploit a law which allows retailers outside the European Union to sell goods worth less than 17 to UK consumers free from VAT," according to the report.

"These fulfilment businesses have allowed retailers to sell CDs and DVDs by mail order usually for between 3 and 5 cheaper than high street shops.

"Apple confirmed that it is looking at setting up a similar operation on Guernsey. This would allow it to lower the prices of music downloads from 79p, perhaps to as little as 67p."




by MacNN Staff

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  1. siMac

    Joined: Dec 1969

    0

    We'll see...

    lower retail price, or increase profit margin?

  1. kudos

    Joined: Dec 1969

    +2

    Gobsmacked!

    As a Guernsey resident it might surprise you to know that Channel Islanders are not allowed to buy tracks from the Itunes Music Store despite being in the UK.

    Even worse than that, since December last year Apple stopped delivering to the Channel Islands from the Apple store altogether giving no reason!

    So if Apple does set up an operation here they better allow us the priviledge of buying tracks and using the online Apple store !

    Apple, why do you make it difficult for me to love you ?

  1. coldfusion1970

    Joined: Dec 1969

    0

    Deal

    Go on the Apple. I look forward to cheaper prices ASAP.

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