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Jersey - VAT and Excise

VAT and Excise

For VAT and Excise purposes the Channel Islands are excluded. An example of the legislation which covers this is Directive 92/111 which is principally concerned with various simplifications to the VAT regime in time for the single market. Part of the preamble identifies where we stand:

"whereas certain territories forming part of the community customs territory are regarded as third territories for the purposes of applying the common system of value added tax;"

Article 23 of this Directive establishes that for the purposes of import and export formalities the Channel Islands are regarded as third countries.

1. Goods ... entering the community from a territory which forms part of the customs territory of the community but which is considered as a third territory for the purposes of applying this directive shall be subject to the following provisions:

(a) the formalities relating to the entry of such goods into the community shall be the same as those laid down by the community customs provisions in force for the import of goods into the customs territory of the community;

(b) when the place of arrival of the dispatch or transport of these goods is situated outside the member state where they enter the community, they shall circulate in the community under the internal community transit procedure laid down by the community customs provisions in force ...

2. Goods ... dispatched or transported from a member state to a destination in a territory that forms part of the customs territory of the community but which is considered as a third territory for the purposes of applying this directive shall be subject to the following provisions:

(a) the formalities relating to the export of those goods outside the territory of the community shall be the same as the community customs provisions in force in relation to export of goods outside the customs territory of the community;

For excise the situation is spelled out by Directive 12/92.

Article 5 of Directive 12/92 states:

1. The products referred to in article 3 (1) shall be subject to excise duty at the time of their production within the territory of the community ... or of their importation into that territory.

'importation of a product subject to excise duty' shall mean the entry of that product into the territory of the community, including the entry of such a product from ... the Channel Islands.

However, where the product is placed under a community customs procedure on entry into the territory of the community, importation shall be deemed to take place when it leaves the community customs procedure.

2. Without prejudice to national and community provisions regarding customs matters, when products subject to excise duty coming from or going to third countries ... or the Channel Islands are under a community customs procedure other than release for free circulation or are placed in a free zone or a free warehouse, the excise duty on them shall be deemed to be suspended.

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