Internet Sales
The Channel Islands have the distinct advantage of being outside the European Union and can thus take advantage of the ’Low Value Consignment Relief’ (LVCR). In essence this means that products can be physically shipped VAT free from the Channel Islands to mainland UK if under £18 and to Europe if under €22. As a result, high volume, low value products can be shipped to the UK and to Europe with a greater profit margin and/or at more competitive prices. The physical location of the Channel Islands, being in such close proximity to the UK and to mainland Europe, ensures that there are fast, efficient mail links with little or no additional postal delays.
In order to take advantage of this benefit, companies must be locally resident i.e. incorporated in Jersey or Guernsey and locally managed and controlled. Our e-commerce team provides these corporate and management requirements along with a wealth of contacts and experience in the industry. To date we manage companies selling products from CD/DVDs, health supplements, contact lenses, computer and personal entertainment accessories and prescription glasses. In addition to the VAT relief there are other significant benefits for certain merchants such as those selling contact lenses and food supplements. As an added benefit many clients within our e-commerce team also use Basel Escrow Services to offer payment security enhancements to their main suppliers.
Practical Example
"If an entrepreneur based in, say, Mumbai was to establish a company in the UK selling low value products over the internet to the Indian community in London, not only would his profits be subject to UK corporate tax but his customers would be paying VAT on the goods purchased. Imagine now that the same entrepreneur establishes his European base in Jersey selling low value goods to the same client base -neither he nor his company would pay any taxes in Jersey or in the UK and his customers would pay no VAT in Jersey, UK or in Europe."
Significant advantages also exist for the UK or European based entrepreneur including benefits
in the areas of VAT, confidentiality, marketing and regulation.
To help provide clients with the components necessary to meet all of their offshore needs we have created an alliance between key partners and we are happy to help you to establish whether an offshore structure may be of benefit to you. This expertise covers company incorporation and management, legal and
tax advice, fulfilment and call centre services as well as payment and hosting solutions.
If you would like to find out more about our services and how we can help your business please contact us by completing our online enquiries form.
Alternatively please feel free to call Grant Twine or Mark James on +44 (0)1534 500 900.
|
Click here to download an article for further information on the services we can provide: |