According to this GI report, quoting British news paper the Guardian, HMV is to start selling VAT-free games on the UK high street.
The retailer already sells VAT-titles on its online store, as does Play.com. Both companies exploit a legal loophole to do so, that allows VAT exemption for products under £18 that are imported into the UK from outside of the European Union.
HMV told The Guardian its VAT-free sales for the last financial year were around £50 million, which would amount to a loss to the Treasury of £8.75 million.
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