LVCR decision could be given tomorrow

GUERNSEY could hear tomorrow (Wednesday 15 March) afternoon whether its legal bid alongside Jersey to save the fulfilment sector has been successful.

The Channel Islands are attempting to overturn a HM Treasury decision to stop the islands benefitting from a VAT exemption, known as low value consignment relief, which is available to all non-EU states for cheap goods shipped into Europe.

Near the end of the second day of the hearing, Justice Mitting acknowledged the urgency of reaching a decision and said he was hopeful to do so by 3pm tomorrow if the parties sum up in the time expected.

He said that the case rested on whether or not the ability to disapply the exemption can be exercised in relation to specific goods, specific territories, or both.

Today the High Court heard from HMRC on behalf of the UK government and from Ravas, a group of retailers campaigning against the Channel Islands use of LVCR.

For HMRC, Phillipa Whipple QC said the EU law gave the government power to exclude the Channel Islands alone from the VAT exemption.

Ravas' legal representative argued that there had been abuse and tax avoidance because of how the islands benefitted from LVCR.