Undertakers and Funeral Directors GST information

Exemption for funeral expenses​

There is an exemption on funeral expenses in order to lessen the tax burden on the bereaved at a time of emotional distress.

The exemption is made by a Regulation amending Schedule 5, under Article 48 of the Goods and Services Tax (Jersey) Law 2007 and applies to certain costs associated with the burial or cremation of the dead, including burial at sea.

Persons making only exempt supplies are not required to register for GST and may not charge GST on their goods and services. However, unlike GST-registered persons, they are not able to reclaim any GST they incur on their business expenses.

Exempt Costs

The following costs are exempt to GST:

• the disposal of the remains of the dead
• the making of arrangements for, or in connection with, the disposal of the remains of the dead
• the services of one undertaker to another in connection with a specific funeral

The following goods and services will be exempt from GST when provided by an undertaker or funeral director as part of a funeral:

• package relating to the disposal of the remains of the dead
• the supply of a coffin
• the cover and fittings for a coffin
• the casket, or urn
• embalming
• the digging, preparation and refilling of graves
• the transport of the deceased to the burial ground or crematorium
• the shroud or robe
• use of a chapel of rest
• provision of bearers
• transport of mourners in the undertaker’s or funeral director’s limousines
• bell tolling and music at the funeral

The following services provided by undertakers and funeral directors will be exempt in cases where the body has been released from the mortuary to a bereaved family to arrange the funeral:

• embalming
• use of a chapel of rest
• the digging, preparation and refilling of graves
• burial or cremation
• the interment of ashes
  

Exemption under these circumstances will apply, regardless of whether the service is provided direct to the bereaved, or to a third party, such as another undertaker, or funeral director.

Non-exempt costs

The provisions for exemption, as outlined above, apply only to the disposal of the remains of humans.

The burial or disposal of animals is standard rated for the purposes of GST.

Some services, such as the provision of commemorative flowers and headstones are also not covered by exemptions and are liable to be charged at the standard rate of GST when supplied by a GST registered business.