High street kiosks to cut price of games

High street retailers HMV and Woolworths are cutting the price of some video games by selling them VAT-free via special in-store kiosks.

The stores are to take advantage of a VAT loophole by allowing customers to order directly from the Channel Islands using electronic terminals.

The move, which will allow the retailers to match competitive internet prices, means customers can order goods under £18 with zero VAT added.

Woolworths has already installed kiosks in 40 of its stores, while HMV is planning to roll out the terminals in 250 of its sites.

A report in The Guardian claims: "HMV's new terminals offer 'free home delivery' not from the group's London distribution centre, but from its base on the Channel Islands tax haven of Guernsey. The extra expense of postage is paid for many times over by avoiding VAT."