Jersey Value Added Tax

Goods and Services Tax (GST)

• Tax Type: Jersey levies a Goods and Services Tax (GST), which is a form of consumption tax.
• Tax Rate: The standard rate of GST in Jersey is 5%.
• Taxable Supplies: GST is charged on the supply of most goods and services in Jersey.

GST Registration

• Registration Threshold: Businesses making taxable supplies in Jersey may be required to register for GST if their turnover exceeds a certain threshold.
• Voluntary Registration: Businesses with turnover below the threshold may register voluntarily.
• Non-Resident Businesses: Non-resident businesses supplying goods or services in Jersey may also be required to register for GST.

GST on Imports

• Imported Goods: GST is payable on goods imported into Jersey.

GST Exemptions

• Exempt Supplies: Certain supplies are exempt from GST. These exemptions typically include:
  • Financial services
  • Property transactions (sales and leases)
  • Health services
  • Education
• Zero-Rated Supplies: Some supplies are zero-rated, meaning GST is charged at 0%. This is different from being exempt.

GST Input Tax

• Input Tax Credit: Businesses registered for GST can generally reclaim GST they have paid on their business inputs (goods and services they purchase) that are used to make taxable supplies.

GST Administration

• Revenue Jersey: GST is administered by Revenue Jersey, a department of the Government of Jersey.
• GST Returns: Registered businesses must file regular GST returns.

GST and Foreign Investors

• Impact on Businesses: GST affects the cost of goods and services in Jersey, which can impact businesses, including those owned by foreign investors.
• Import/Export: Businesses involved in importing goods into or exporting goods from Jersey need to consider the GST implications.
• Services: The supply of services to and from Jersey can also have GST consequences.

Important Notes:

• GST is a relatively low-rate tax compared to VAT in many other jurisdictions.
• GST rules can be complex, and it is essential to determine the correct GST treatment of transactions.