The 99p music download could end after a tax crackdown on online retailers such as Amazon and Apple. The cheap one-click service - which has been credited as killing CD sales - has flourished under previous laws that allow retailers to pay minimal VAT. But now that loophole is being closed by George Osborne in a bid to raise £300million for Government coffers. The age of 99p downloads could soon draw to an end following a tax-crackdown on Amazon and Apple A measure announced in last week’s Budget would force online companies to pay VAT in the UK. Currently Apple and Amazon sell their wares through Luxembourg, where the value added tax is levied at a meagre three per cent.
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Measure announced in Budget will force online retailers to pay VAT
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Amazon and Apple's 99p singles would rise to £1.16
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Tolerance for those who do not pay 'fair share' has gone says Osborne
In documents published alongside the @placeholder, the Government also promised to look at drawing up new laws that could be used to tax sales.