Vehicle Emissions Duty (VED)
What is VED?
VED is an impôts (excise) duty on motor vehicles. It is effective from 1 September 2010.
VED becomes liable at the time the vehicle first needs to be registered. This includes vehicles already in the Island that have not yet been registered with ‘J’ plates.
How is VED calculated?
The duty will be based on manufacturers’ CO2 emissions data. As CO2 emissions data (in the required format) is normally only available for cars produced since March 2001, the Cubic Capacity (CC) will be used as the basis for the VED calculation for vehicles manufactured before this date. In the case of commercial vehicles, the VED is calculated on the CC.
For vehicles with low CO2 emissions (120g or less CO2 / km) or small engine size (1000cc or less) there is a zero rate of duty.
If you need further guidance on any of the above, then you should contact Customs.
How can I present my vehicle’s CO2 emissions data?
You must present one of the following original documents at the Driver and Vehicle Standards (DVS) office in order for your vehicle’s CO2 emissions figure to be checked:
- motor vehicle registration certificate / log book (V5C in the UK) issued by a governmental vehicle registration / taxation department
- V55/1 form. This is in effect the birth certificate of a motor vehicle, produced by the manufacturer
- European Whole Vehicle Type Approval Certificate or a Type Approval Certificate issued by a national government of an EU country, which contains the required CO2 data
- Certificate of Conformity issued by a motor vehicle manufacturer which contains the required CO2 data
Other evidence (eg from the VCA car fuel data website) will not be accepted. If you don’t have any of the above documents, or we can’t confirm your vehicle’s emissions, then VED will be based on the vehicle’s cubic capacity (CC).
CO2 emissions change with model year, trim levels and transmission, so VED may differ from vehicle to vehicle, even if the cars appear to be the same.
Is there any reduction of VED for second hand vehicles?
Yes. Second-hand imported vehicles will pay a reduced duty. The amount of this duty depends on the vehicle’s age.
How do I know how much duty there will be to pay?
When you have got your CO2 emission figure from any of the above forms you can check the rate of VED duty you will have to pay.
You may also be required to pay Goods and Services Tax (GST) along with Common Customs Tariff (CCT) - this is chargeable on vehicles that are imported from outside of the Customs area of the European Union.
If you think that any of the above duties / taxes do not apply to your vehicle, then you should contact Customs.
Download 2012 rates of duty for CO2 and cylinder capacity (size 10kb)
Will I be required to pay import GST on VED as well as the value of my vehicle?
No. GST is charged on the value of imported goods which includes the cost of freighting and insurance plus relevant import duties. VED is not charged on import, but is an excise duty that is required to be paid when a vehicle is first required to be registered. It is not included in the value of a vehicle for GST purposes on import.
What will happen if I am buying my vehicle from a garage / motor trader?
Normally, the registration process will be handled by the garage / motor trader on your behalf.
What do I need to do if I’m importing the vehicle myself?
You must complete a vehicle declaration online through the Customs website before registering the vehicle at DVS. Payment can be made online, or at the Customs or DVS public offices.
If you have been given a Consignment Line Code (CLC) from your shipper or courier company, you can enter this in the CLC section of the Customs website.
If you are making a Vehicle Voluntary or Vehicle Pre-Arrival declaration you will need to go to the ‘create an account’ link and follow the necessary steps. If you already have a Customs account you can log in as normal to make your declaration / payment.
Customs declaration and payment website
What will happen if I own a garage or I am a motor trader?
Approved motor traders may be able to have the VED on imported vehicles suspended. VED can only be suspended for a maximum of 12 months and while the vehicles are 'stock in trade'*.
An approved motor trader is a person or company who imports vehicles as ‘stock in trade’ and is approved by Customs and Immigration.
In order to benefit from the approved motor trader status you must be a person(s) actively operating a formal business on a full or part-time basis selling vehicles for profit.
If you currently have a business account with Customs you may apply for approved motor trader status online via your account. If you do not already have a business account you will need to create one on the Customs declaration and payment website before you can apply for this status.
*‘Stock in trade’ means new or second hand motor vehicles which are intended to be sold within 12 months of their importation. Such vehicles will still be counted as stock in trade if they are temporarily put to use in the approved motor trader’s business.
Customs declaration and payment website
What if I run a hire car business?
Approved hire car traders may be able to have a reduction of 85% on the VED for motor vehicles registered for hire. This is restricted to small passenger vehicles, minibuses and motor cycles which are hired out for a non-renewable period of up to 1 month.
An approved hire car trader is a person or company who hires out vehicles and is approved by Customs and Immigration,
In order to benefit from the approved hire car trader status, you must be a person(s) actively operating a formal business on a full or part-time basis hiring out vehicles for profit.
If the vehicle ceases to be registered for hire the remaining 85% VED will become payable within 30 days.
If you currently have a business account with Customs you may apply for approved hire car trader status online via your account. If you do not already have a business account you will need to create one on the Customs declaration and payment website before you can apply for this status.
Customs declaration and payment website
What if I am a Customs approved general importer?
If you are importing a vehicle for company use, you can start the process when registering your vehicle with DVS. Alternatively you can make a pre-arrival declaration online through the Customs website before registering the vehicle at DVS. Payment must be made within 30 days of the vehicle being registered.
Can I claim relief from VED?
Yes. Relief from excise duty will be allowed on any motor vehicle:
- that was constructed more than 25 years earlier than the date on which it is required to be registered
- has not more than 16 seats in addition to the driver’s seat and is constructed / substantially and permanently adapted:
a) to be driven by a person suffering from a physical defect or disability, or
b) for the carriage of a person in a wheelchair or on a stretcher
- that is required to be registered under Article 4 of the Motor Vehicle Registration (Jersey) Law 1993 as a consequence of the owner becoming resident in Jersey if the following conditions are met:
a) proves to the satisfaction of the Agent of the Impôts that the owner:
i) has been resident outside Jersey for a continuous period of not less than 12 months prior to the motor vehicle being required to be registered, and
ii) has had the vehicle in his or her possession and has used the vehicle for not less than 6 months prior to its being required to be registered, and
b) has undertaken to the Agent of the Impôts not to sell, hire or otherwise transfer ownership or use of the vehicle for at least 12 months following the date on which it was required to be registered
Can I claim repayment / drawback of VED?
Yes. If the vehicle is exported or destroyed whilst under Customs control within 6 months of its registration, then there will be a repayment of 50% of VED (as long as no relief was claimed when the VED was paid).
How do I claim relief or drawbacks of VED?
You will need to contact Customs and we will assist with your individual requests.
If after registration and payment of VED I enhance my vehicle to reduce its CO2 emissions, can I claim any refund?
No. The VED liability is calculated the first time the vehicle is required to be registered in Jersey and any subsequent modifications do not affect this liability.
Where can I find out more information about registering my vehicle in Jersey?
More information on registering a vehicle is available in this section of this site.
Registering your vehicle in Jersey