Play.com staff at work in a UK warehouse – the firm, which exports into the UK from Jersey, has been sold to Rakuten of Japan.

FULFILMENT companies have been ‘put on notice’ to sell following the UK’s clampdown on VAT relief on low value goods sent from the Channel Islands, a tax campaigner has said.

Richard Allen, the spokesman for Retailers Against VAT Avoidance Schemes, was speaking following the announcement that Jersey-based Play.com, which has estimated annual sales of about £500m., has been sold to Rakuten of Japan for £25m.

Mr Allen believed the sale of the company, which sells CDs and DVDs at VAT-free prices, was a direct result of the UK’s decision to limit the exploitation of low value consignment relief.

‘£25m. is not a lot of money when you look at how much the company makes a year – that is because their business model is based on LVCR,’ he said.

• Read the full story in the Guernsey Press. Click here for subscription details. Individual editions are now available online.