Articles

Treasury to close loophole that allows VAT-free DVDs
(from BBC News)
That would be the loophole exploited by the likes of Play.com to offer their low prices -- it's how they started out, and various other companies have copied it since, including Amazon for some of their orders.
It'll be interesting to see how this change effects things, mainly in terms of if prices for consumers shoot up. Supposedly this is to help smaller UK-based businesses be able to compete, but I can imagine bigger companies like Amazon keeping their lower prices and swallowing the cost of VAT in order to price out the competition. Or they might not bother. Fingers crossed things don't get jacked up too much...