I also don't see how it's a VAT loophole.
Amazon DO NOT charge 20% VAT and then only pay 3%, if they did I'd imagine they'd be under criminal investigation. They charge 3% and pay 3%.
The purchase price they negotiated with supplies is totally different. Suppliers to amazon shouldn't need to consider what the VAT rate that amazon charge is. That's between Amazon and the point of sale.
Last edited by JoeD; 01-17-2013 at 12:57 PM.