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Apple Seeks Loophole to Avoid British Taxes on iTunes Music
Sunday, January 15th, 2006 at 2:00 PM - by Brad Cook
Apple will set up a business on Channel Island Guernsey with the intention of avoiding the payment of VAT (value-added tax) on the music it sells through the British iTunes Music Store. The company isn't the first to do so, according to Macworld UK, which cited a Telegraph article about the matter.
Some in government have called for closure of the loophole, which enables retailers outside the European Union to avoid VAT on all goods worth less than £17. The Telegraph confirmed with Apple that it is indeed looking to set up shop on Guernsey, with the intention of cutting single song prices from 79p to as little as 67p.
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