VAT rise wont affect online

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Online retailers with distribution facilities off the UK mainland are safe from the VAT hike.

The likes of HMV, Amazon, Play and The Hut run operations from Jersey or Guernsey, which means they'll remain unaffected by the increase.

Digital distributors not based in the UK will also be able to avoid the duty hike.

There are opportunities to set up services in territories where value added tax rates are less or non existent,” said Mastertronic MD Andy Payne. Does the UK Government actually realise that?”