UK and CI Ebay and Amazon retailers cue up to exploit LVCR

UK and Channel Island Retailers on Ebay and Amazon are now using Channel Island fulfilment operations to avoid VAT increasing the already huge LVCR VAT losses for the UK. One Guernsey based car part retailer is selling 40,000 items a month which at £10 an average order equates to £70,000 a month in avoided VAT (at 17.5%). Most of the items on offer are made in the UK or EU. Retailers also appear to be finding ever more devious ways of exploiting LVCR such as splitting orders for items worth over £18 into two packages. For instance car wiper blades that cost £20 can be sent in two packages at £10 each avoiding the VAT.  Jersey based fulfilment company DMS Jersey Ltd offers LVCR based fulfilment for Amazon and ebay traders


  1. It’s getting worse! One of my main competitors splits an order into a number of consignments, for example the customer may order a Cleanser for £17.99 and a moisturiser for £50. They are sent in two packages, the cleanser attracts no VAT and the moisturiser VAT is paid using the pre paid scheme….so that is one order from a customer, send in two packages, one with VAT, one without! Shambles….

  2. Why doesn’t HMRC regards this splitting orders to gain LVCR nonsense as abusive ? What exactly would they regard as abusive ? It clearly says in the LVCR directive that member states must prevent abuse. Does anyone out there know of anyone who was actually stopped from selling anything because it was abusive ? I can certainly think of a few abusive comments to send to HMRC and I won’t be splitting them into separate jiffy bags!

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