VAT and the Jersey resident
Updated 4 August 2016
Words you may need to know
Claim - ask for something you have a right to have
Customer – a person who has bought something
Freight – goods carried by commercial means of transport eg by plane, ship or train
Goods – things you can buy
Jersey resident – someone who lives in Jersey
Minimum – lowest amount or limit
Refund – when you get money back
Resident – you are ‘a resident’ of the place where you live
Retained – held back; not given over
Service – something provided for you eg a gardening or motor repair service
Tax – money raised by government from people to support government services
VAT – ‘Value Added Tax – is a tax you pay on some things you buy or services you use
Verify – confirm as true
‘Zero-rated’ – if goods are zero rated it means that no tax is due on them
Goods supplied to Jersey residents from the UK or abroad
Some companies selling goods to Jersey residents in the UK or abroad are willing to help in the process of getting back the VAT paid by the customer on the goods.
Sometimes companies are only prepared to issue the necessary refund form if the value of the sale is above a minimum amount. Some companies will not have many customers who want to claim the VAT refund and so they might not have arrangements in place to issue or give out the form that is needed.
Customers will normally have to prove that they are resident outside the UK or country where they are claiming the tax refund eg by showing a passport.
The 'Export of Goods' refund form must be stamped by the Customs officers at the place where the customer is leaving the UK or foreign country after inspection of the goods. Except for Manchester, Glasgow, Gatwick and Belfast City Airports, all airports and ports serving the Channel Islands have a box placed in a central place specially for Channel Island residents to leave their forms.
Passengers in light aircraft departing from small airports or passengers travelling from an airport which does not have a box would have to find a customs officer.
The form is then posted back to the address on the form, which may be the address of a specialist refund agency. An administration fee may be retained from the refund.
Jersey Customs may be requested to verify that high value items have arrived in the Island.
Services supplied to Jersey residents in UK or abroad
VAT paid on services supplied in the UK or abroad cannot be refunded. This situation includes costs incurred in the repair of goods sent out of Jersey and holidays booked through UK or foreign operators or companies to be taken out of Jersey. The important thing is where the service has been supplied rather than who or what it was supplied to.
For further information see HM Customs and Excise website www.hmrc.gov.uk
Goods supplied to Jersey residents by mail order, or exported by freight.
A person who obtains goods by freight from suppliers off the Island should ask for the item(s) to be 'zero-rated' for VAT so that tax need not be paid.
Most companies supplying goods commercially do not charge VAT as it is not in their interest to risk losing business by charging a price that appears to be too expensive because it has the VAT included. However, when ordering goods customers might be asked for Jersey's VAT Country Exemption Code. The code is JS.
Goods entering the Island as freight will be checked by Customs. However this check is not the same one that is required when Customs carry out a check on people who are bringing goods into the island themselves. The check carried out on people is to make sure that people pay the right amount of VAT if the goods are taxable.
Some mail order firms deduct VAT, or some of it (to allow for administration costs), from prices of goods sent to Jersey residents.
Procedure if a UK supplier refuses to deduct VAT
When a UK trader refuses to supply goods free of VAT customers should write to HM Customs and Excise, 21 Victoria Avenue, Southend-on-Sea, Essex, SS99 1BB for a written ruling (decision).
The ruling should then be sent to the company involved who may consider refunding the VAT charged.
For VAT queries of a general nature customers should contact HM Customs National Advice Service, telephone 0845 010 9000.
For further information please click on the following link http://www.gov.je/TaxesMoney
For Customs queries (including import GST) contact:
Jersey Customs & Immigration Service
Customer and Local Services, Phillip Le Feuvre House, La Motte Street, St Helier, Jersey, JE4 8PE
Open: Monday to Friday 9am - 4pm