Ministers have received confirmation that the challenge will be heard before the UK proposes to bring down the axe on 1 April.
With up to 2,000 jobs hanging in the balance over the uncertain future of the online mail order industry, there will be anxious eyes on the progress of the case.
The UK coalition government plans to shut off the Channel Islands’ access to Low-Value Consignment Relief – the £15 threshold for charging VAT on goods entering the UK from outside the EU.
Currently, Channel Islands firms can export goods, such as CDs and DVDs, priced below £15 VAT-free, but last year UK Chancellor George Osbourne said he would shut off the islands’ access to LVCR after years of campaigning by UK retailers, who say that they are being undercut.
Economic Development Minister Alan Maclean said that they had secured agreement to have the case heard early – a significant step because if the change is made on 1 April, jobs could be lost almost immediately. He also confirmed that lawyers from PwC had been retained for the case.
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