Charities and non-profit organisations (NPOs)
Charities and some non-profit organisations (NPOs) can claim GST refunds on the goods and services they buy or import.
The supply of any service or goods by a charity is exempt from GST, but you must first be defined as a charity by the Taxes Office.
Non-profit organisations (NPOs)
GST is chargeable on supplies of goods or services by, or to, a non-profit organisation.
However, a relief is granted where an NPO doesn't have to charge GST on the goods and services it supplies if it is:
- established only for artistic or cultural objectives
- financially supported wholly or mainly by the States of Jersey
These supplies are zero-rated for GST. To qualify, your NPO must apply in writing to the GST department.
Download GST direction 2008/12: non-profit organisations zero-rated GST supplies (size 30kb)
Definition of a charity for GST purposes
A charity, which is a company, association or trust, established in Jersey can apply for tax exemption if it exists for one or more of the following reasons:
- advancement of education
- relief of poverty
- furtherance of religion
- a purpose beneficial to the whole community
- the service of any church or chapel or any building used solely for the purpose of divine worship
To qualify as a charity, you will need to send evidence that your organisation satisfies the above conditions to the GST department. If you qualify, we will send you a letter of confirmation.
Applying for charity tax exemption
Qualifying purchases and expenses
Charities must pay GST on their purchases and business expenses at the time of purchase, but can claim refunds.
Purchases and expenses qualifying for a GST refund must:
- have been supplied directly to the charity itself (not to a person who donates goods or services to the charity)
- have been paid for by the charity
- be directly for the administration or charitable activities of the charity (as defined in its articles, constitution, endowment or similar document)
- have been paid at the time you claim for refund
Download GST direction 2008/11: charities and non-profit organisations (size 22kb)
How to claim a GST refund
Once your organisation has been defined as a charity, you can claim a GST refund if you:
- have a record of the sale, purchase or importation, and the GST paid
- have actually paid the GST
- apply within the time limits
- apply using the approved application form
You must make your refund claim online. You don't need to itemise your sales or purchases on the claim form. Enter the total amount of GST for the period of the claim.
GST Claim for Refund International Service Entity or Charity on Business-to-Business website
How often you can claim
The amount you are claiming will determine how often you can claim:
|Claim total ||How often you can claim|
|Less than £1000||annually |
|£1,000 to £5,000||six monthly intervals |
£5,000 or more
We may consider more frequent repayments if your charitable organisation can show that you will experience cash-flow problems from not being able to make claims more frequently.
Repayments will be made within 30 days of receiving a correct claim.
You must keep receipts for purchases and other business records that prove the accuracy of your claims for six years from the date to which they relate.
GST on imports
Charities and NPOs don't have to pay GST on imports that are related to their charitable, artistic or cultural objectives.
To qualify for GST-free imports, you must:
- apply in writing to the GST department and receive written confirmation that your organisation qualifies
- create an account with Customs as a GST-approved trader
Customs approved traders