16 April 2008
Businesses within the financial services industry may now apply to be approved as an International Services Entity (ISE) for GST purposes.
The benefit of becoming an ISE is that the business pays a flat rate annual fee to the Comptroller of Income Tax rather than accounting for GST in the ‘normal’ way. If the application is successful the ISE will receive an ‘End User Relief Certificate’ which will be proof that they should not be charged GST. In addition, to assist suppliers approved ISEs can opt to be listed by the Comptroller on the Jersey Tax website.
Becoming an ISE is optional and the benefits should be assessed on an individual commercial basis. If a business decides not to seek approval as an ISE, or application is not approved, the normal rules on registration for GST apply. All businesses with an annual taxable turnover in excess of £300,000 must register by law, voluntary registrations are accepted from businesses below this threshold.
You can apply for approval via the States business-to-business website or alternatively through our own web pages.
Detailed explanation on ISEs are available in the form of application completion notes, a tax information sheet and an excel spreadsheet via Jersey Tax website. The spreadsheet helps a business work out the annual fee that would be payable. ISE fees due this year are not payable until July.