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Freeserve Considers VAT Move - Again

Posted: 17th Mar, 2003 By: MarkJ
Once again UK ISP Freeserve is considering a move to Madeira, where the V.A.T rates are lower and they can thus save money; at least until the loophole is finally plugged.

You don't need to have the strongest memory to recall that this all relates back to AOLs wondrous 17.5% tax avoiding, that and Freeserve's recent losses:

The FT cites Freeserve boss, Eric Abensur, as confirming that the matter is currently being discussed. He told the pink paper that a decision whether to move the ISP's broadband business to Madeira would be made "later this year".

This isn't the first time Freeserve has upped-sticks in a bid to reduce its tax bill.

Last July Freeserve confirmed that it was moving its business for its Anytime unmetered ISP service to Madeira to take advantage of the island's 13 per cent VAT rate, as opposed to 17.5 per cent in the UK.


Delay's in resolving the issue over VAT payments are another factor, yet the real question is whether or not it would affect service quality? Probably not, it's more of a political move. More @ The Register.
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