VATF36220 - What to consider prior to determining whether to use an intervention: matters to consider when looking at particular types of taxable person or activity: box breaking and box consolidation: what is 'box breaking' and 바카라 사이트˜box consolidation바카라 사이트™?
Box breaking
Simply put, box breaking is the purchase of handsets 바카라 사이트˜locked바카라 사이트™ into particular networks from retail outlets (supermarkets, stores or network retail shops) in the UK, which are then 바카라 사이트˜unlocked바카라 사이트™ so that they can be used on any network. These unlocked phones are then sold, at a profit, to entities within countries where there are little or no subsidies. When a box breaker purchases 바카라 사이트˜locked바카라 사이트™ phones with the intention of unlocking them and selling them at a profit, the retailer and network provider lose money. This is because phones purchased in the UK that are not 바카라 사이트˜locked바카라 사이트™ to a network cost more than those that are.
Although the unlocking of the phones by the box breaker may breach the supplier바카라 사이트™s/manufacturer바카라 사이트™s terms of sale, it is not an illegal activity.
Box breaking on a large scale can require a substantial number of individuals to buy and reconfigure the handsets (바카라 사이트˜runners바카라 사이트™). These individuals might be employees, agents, friends, family etc (VATF36232). In addition, extensive warehousing or storage facilities will be required. The most significant cost of the box breaking operation is the purchase of the phones. Other costs include reconfiguring the handset for the intended customer market, handling stock, working capital and shipping.
Box consolidation
Box consolidators work in much the same way as box breakers, except the mobile phones purchased are not locked into any network (usually described as 바카라 사이트˜sim free바카라 사이트™). Again, they use 바카라 사이트˜runners바카라 사이트™ to make individual purchases of mobile phones from retail outlets, sometimes up to a hundred purchases from one retail store, and then 바카라 사이트˜consolidate바카라 사이트™ those purchases for onward sale.
Method of payment
It is usual for box breakers and box consolidators to pay for the mobile phones in cash or using gift cards rather than bank transfers, credit or debit cards. It is also usual to find them being paid in cash by their customers.
When visiting a taxable person involved in box breaking or box consolidation you should consider the issues set out in VATF36230.