HMV to Offer VAT-Free Games Instore

Entertainment retailer HMV is to begin offering VAT-free games via instore kiosks, under a new initiative called HMV Delivers.

According to a report in The Guardian, the company plans to extend the controversial VAT-avoidance scheme used by the company's website to stores across the UK, offering games, CDs, DVDs and Blu-ray movies minus the 17.5 per cent charged on items by the UK Treasury.

Many online retailers take advantage of the loophole that allows VAT exemption for products under GBP 18 that are imported into the UK from outside of the European Union.

HMV.com and Jersey-based Play.com already operate schemes to take advantage of the legal loophole originally designed to minimise the administration burden on marginal trade.

HMV has said that products on offer via the instore kiosks will be restricted to products not available on store shelves, according to the report.

View: Games Industry