The current VAT tax rules allow retailers to avoid paying VAT by sending goods valued at less than £15 from the Channel Islands.
Low Value Consignment Relief (LVCR) means that VAT is not applied to goods valued at less than sent from the Channel Islands.
The loophole has been exploited in recent years mainly by companies selling CDs, DVDs and games online.
LVCR will no longer apply as of 01 April 2012.