Placed my first order with Zavvi today and noticed that they don't deduct the VAT from items ordered/shipped to customers outside the UK/EU.
When I contacted customer service, they give you spin and never answer your complaint/questions properly - a tactic that is typical for online merchants who hope that the complaint just goes away...
Charging VAT when it not applicable is obviously wrong. Even more so when you know they're not submitting the money to the government. They're simply pocketing that money directly into their pockets. It's blatant fraud and misrepresentation.