It is charged at every stage of the supply chain and is collected by GST-registered businesses when they sell goods and services to their customers. The tax is then paid to the Island’s taxation authority. GST-registered businesses are, however, able to reclaim or offset the GST they have paid on their business costs.

Consequently, the full amount of tax (based on the value of the final product or service) is paid by the consumer .There is no ‘tax on tax’ effect. GST is not paid on GST.

Why adopt GST in Jersey ?

GST has many features that make it an attractive revenue-raising option for Jersey:

It is a more stable revenue source than many other taxes.
Substantial amounts of revenue are generated, even at relatively low tax rates.
It is fair, since it affects the broadest range of taxpayers - ensuring that those who benefit from public services also contribute to their funding. (Previously, about 25% of eligible taxpayers did not pay any tax in Jersey).
It is an efficient and relatively inexpensive tax to administer - with operating costs typically in the region of only 1% of the tax yield.
The compulsory issue of tax receipts and invoices provides an audit trail that makes the system less susceptible to fraud and evasion.
GST does not tax investments and savings. It encourages saving rather than spending and indirectly rewards enterprise and encourages economic resilience.
Since GST only applies to the domestic consumption of goods and services, the GST incurred in the process of producing exports can be identified and refunded, assisting exporters to be competitive in the world market.
Visitors to Jersey will contribute to the Island’s revenue.

Which goods and services will be liable for GST?

The States has decided that GST will be charged at 3% on all goods and services (‘taxable supplies’) unless they are excluded specifically by legislation. The 3% rate will not be increased for at least three years.

Current exclusions include financial services, insurance, postal services, medical and paramedical supplies, medicines on prescription, supplies by charities, the supply housing, the supply of land, and some services or materials (in connection with the construction of housing, exports and the supply of international services.

Do I have to pay GST on medical supplies?

Medical supplies are exempt from GST when supplied by:

a doctor
a dentist
a registered optician (within the meaning of the Opticians (Registration) (Jersey) Law 1962)
a person registered under the Health Care (Registration) (Jersey) Law 1995
a person registered under the Nursing and Residential Homes (Jersey) Law 1994, for supplies made by or on behalf of that person to a patient or resident in the home.

Will GST be charged on my prescriptions?

Not if you are entitled to claim pharmaceutical benefit under the Health Insurance (Jersey) Law 1967 for the supply. However, prescriptions will be free from February 2008.

Is GST charged on house sales and rents?

All housing sales, transfers or leases are zero-rated.

Do I have to pay GST on a loan or mortgage?

No, loans and mortgages are exempt. Hire-purchase, conditional sale or credit sale are also exempt.

How will GST affect clubs and associations?

If a club or association has a taxable turnover of £300,000 or more per annum, it would be liable to register for GST.

Which other countries have a GST system?

About 150 countries have adopted a GST system as their main consumption tax and a major source of indirect tax revenue. Many people in Jersey are already familiar with the UK’s Value Added Tax (VAT), introduced in 1973. This is a broad-based, multi-stage tax, applied to a wide range of business transactions.

Who pays the tax?

GST registered businesses throughout the supply chain are required to make returns on their sales and expenditure and to pay any tax that is due. They must account for the tax on their sales but can offset any GST costs incurred in the course of their business. The full amount of tax is eventually paid by the consumer.

Who will administer GST?

The Income Tax Office has the prime responsibility for the tax but Customs also will be involved with collecting GST charged on all forms of imports (commercial, postal and personal).

How many extra civil servants would be needed to administer the GST?

The consultants Crown Agents believe that if the prototype tax they proposed is adopted then approximately ten additional Civil Servants would be needed.

What will the GST system cost to administer?

If the additional Civil Servants identified are accommodated in the existing Customs/Income Tax departments then the overall cost (in accordance with the Crown Agents estimates) would be about one penny for every £1 of revenue collected. This would mean that the administration of a Jersey GST would be very cost effective.

How will it affects Jersey people shopping online or in the UK ?

Purchases made outside of Jersey would be potentially subject to the 3% rate of GST when they arrive in the Island (unless specifically excluded under the law). In order to reduce administration, goods sent to Jersey by post or courier have a £12 “de minimis” waiver below which no tax would be paid. Please see the Customs pages for more information.

Are we paying GST on top of VAT in some shops?

Goods and services bought in Jersey are not subject to a tax levied by any other jurisdiction. Jersey does, however, have a high cost of living and there are additional transport costs in bringing goods to the Island. Consequently, the current retail prices in Jersey reflect the higher costs of doing business here.

VAT is a UK tax and supplies to Jersey are eligible for zero-rating under the UK system, but since there is no price control in Jersey, it is up to suppliers to decide how much they will charge. With the introduction of GST, suppliers will have to make a choice whether to absorb it in the prices already charged to the consumer or add it to the equivalent of the VAT inclusive prices they are currently charging.

How can I find out more about GST?

Copies of the Goods and Services Tax (Jersey) Law, 200- and the GST are available on our legislation section

The States of Jersey Income Tax Office will also be publishing a series of information leaflets to assist the business community and the general public. These can all be found on our guides page

A Guide to Jersey’s GST Law
A Guide to the GST Regulations
Keeping Records and Accounts
A Guide to Completing your GST Return
The GST Retail Scheme
The GST Margin Scheme
GST Refunds for Charities
GST Refunds for DIY Builders
Visits by Income Tax Officers
GST and the Consumer

These can also be obtained from the Customer Service Centre at Cyril Le Marquand House.

How can I get further help?

The States of Jersey welcomes direct approaches from the business community and the general public. A dedicated GST Helpline has been set up to deal with GST enquiries. Helpline officers can provide general advice and guidance, or arrange for your enquiry to be answered by a GST specialist. They can be contacted by telephone on 440555 during office hours, by fax on 737978, by e-mail gst@gov.je or you can write to The GST Help Desk, Income Tax Office, Cyril Le Marquand House, P.O. Box 56, The Parade, St Helier, Jersey.

You do not need to be registered, or liable to be registered, to take advantage of this service.

GST Frequently Asked Questions for Consumers

See Also