Tuesday 07 February 2023
Select a region
News

Talks held to keep Sark free of GST

Talks held to keep Sark free of GST

Thursday 08 December 2022

Talks held to keep Sark free of GST

Thursday 08 December 2022


Discussions are underway to find a way for Sark businesses to avoid having to implement GST if the measure goes ahead in Guernsey.

The States' Assembly in Guernsey is expecting a debate in January on proposals to introduce GST at 5% on almost all goods and services by no later than mid-2025.

Without special arrangements, goods and services purchased from Guernsey for delivery to Sark could face GST despite Sark being outside the remit of Guernsey's tax collection system.

Guernsey's leading Policy and Resources Committee told Express this week: "Dialogue is ongoing through the Sark Liaison Group to find the most administratively simple solution to allow Sark businesses to reclaim GST incurred on purchases from Guernsey.

"These constructive discussions will continue should the States approve the introduction of a GST."

Sark_island.jpeg

Pictured: Unlike Guernsey and Alderney, there is no fiscal union between Guernsey and Sark, above, which puts the smaller island outside the States' tax system.

The Committee published its long-awaited policy letter last week setting out a range of tax proposals - including GST - to increase States' income by an estimated £55million a year.

There is one mention of Sark in the policy letter - in a table which lists goods and services the Committee wants to 'zero rate' for GST purposes. The table includes "transport of goods and passengers between Guernsey and Alderney or Sark or Herm".

"The application of zero rating to exported goods and services is universal in all GST and similar schemes," said the Committee.

"This is because such products are often liable for tax on entry into their destination jurisdiction and the application of a GST from the source jurisdiction is considered a barrier to trade."

Sign up to newsletter

 

Comments

Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.

Once your comment has been submitted, it won’t appear immediately. There is no need to submit it more than once. Comments are published at the discretion of Bailiwick Publishing, and will include your username.

There are no comments for this article.

To place a comment please login

You have landed on the Bailiwick Express website, however it appears you are based in . Would you like to stay on the site, or visit the site?