‘No evidence’ LVCR move has helped UK shops
Tuesday 24th September 2013, 12:32PM BST.
COMMERCE and Employment has seen no evidence of UK high streets directly benefiting from Guernsey’s loss of VAT relief on exports.
Minister Kevin Stewart also insisted it was working closely with the relevant bodies in Guernsey and the UK to ensure that LVCR rules were being followed. He was responding to the latest claims from Richard Allen, of the Retailers Against VAT Avoidance Schemes, who said that some local companies were still escaping VAT charges by diverting goods via other European countries where the relief had not been scrapped.
However, Deputy Stewart has hit back at these claims by insisting that measures were in place to stop LVCR abuse in Guernsey since the VAT relief was scrapped locally.
‘The Commerce and Employment Department, Guernsey Post and HM Revenue and Customs have worked together closely to ensure that rules relating to LVCR are effectively applied and continue to do so,’ he said. ‘I am sure that Mr Allen would not continue to make these claims without strong evidence. However, we have not had the benefit of seeing Mr Allen’s evidence and nor have we seen the positive impact on the UK high street that Mr Allen said there would be.’