Taxing wait is over for cyber shops

Nine months after opening, the cybershopping mall hosted by UUNet UK has finally introduced VAT processing for the retailers which operate there.

The Internet provider - formerly Pipex - said that since its Bureau Internet retailing service opened in August, it has attracted only a handful of small shops. 'Not having VAT hasn't been a major problem as most of the customers are individuals and not subject to VAT,' a spokesman said.

The Bureau Website points to only three businesses, one the Isle of Eigg charity. UUNet declined to name the other six shops it claims use its services. The spokesman claimed more than 40 more businesses had committed to Web retailing using Bureau. 'Thankfully we've got VAT in time for the uptake in electronic commerce,' he said.

Back-end systems for Bureau are provided by OpenMarket, which originally developed systems for North America. The UK-specific VAT code was delivered as an extra module.

Alan Cornwall, OpenMarket marketing director said: 'It was understood VAT wouldn't be there on day one.' UUNet said it was awaiting more software from OpenMarket. 'What we've put in isn't a complete VAT fix - we're waiting for more code,' the spokesman said.