I supply goods to an ISE - can I charge it GST?
No. You should not charge an ISE GST, and ISEs must not charge GST on their sales.
How can I check if an ISE is approved or not?
An ISE will be listed by the GST team or by an authorised trust company
ISEs listed by the GST team
Most approved ISEs are listed by the GST team on the States of Jersey tax website.
ISEs are also given an end user relief certificate (EURC) that exempts them from being charged GST by their suppliers. You can ask them to show you their EURC before you supply them with goods or services.
International Services Entities on States of Jersey tax website
ISEs listed by an authorised trust company
Some ISEs are not listed on this website or the Taxes Office website. This is because they have been listed by a trust company that has been authorised to maintain a list of ISEs.
If the ISE you are supplying is listed by a trust company, it will not be issued with an EURC. You will need to ask for written confirmation by the trust company that the ISE you are supplying has been listed.
Which supplies do ISEs not have to pay GST on?
If you are a GST registered business you should not charge GST on sales you make to a listed ISE, where the following conditions are met:
- the order comes from an approved ISE
- the supply of goods or services is to be used for the purpose of a business carried on or through the ISE. If the goods or services are not for the purpose of the business - for example social events or private purchases - you must charge GST
If you have a retail business (such as a shop, restaurant, pub, or café), you can continue to charge GST to an ISE if the value of the individual sale is less than £1,000. ISEs can reclaim GST charged in this way.GST Claim for Refund International Service Entity or Charity on business-to-business website
If you are in any doubt, it is up to the ISE to show that GST should not be charged on the sale.
How do I show sales to an ISE on my GST return?
Sales to ISEs are known as 'remitted supplies' and are shown in box 2 of your GST return. Remitted supplies are given the value of zero-rated supplies.
When you record sales to ISEs in your accounting system, use the GST code that is used for zero-rated sales such as exports.
Sales on which you would otherwise charge GST remain taxable supplies and count as part of your taxable turnover.