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VAT "should not and is not" required to be charged on goods which are supplied to Jersey – and the Government will pursue UK retailers who double-charge with GST, the Treasury Minister has said.
Deputy Ian Gorst told the States Assembly yesterday that Revenue Jersey previously reviewed the issue and had lobbied the British Retail Consortium to ensure that they communicated with their UK members to "make it clear that Jersey was not within the UK VAT zone".
However, he said that if States Members were aware of the scenario in which VAT and GST were both charged "then we can seek to intervene in that regard".
His comments came in response to a question from Reform's Deputy Tom Coles on whether the government was taking action to stop UK firms charging 20% VAT in addition to 5% GST on goods.
As of 1 July, larger retailers (those with an annual turnover of at least £300,000) will be subject to the same rules as the Island’s high-street retailers, meaning online orders of any value from companies such as Amazon will be subjected to the 5% sales tax.
Pictured: Deputy Ian Gorst said that Revenue Jersey saw few examples of VAT and GST added to products.
Deputy Rob Ward further asked whether there were an "unintended consequence" in situations where VAT plus GST was charged.
"Thus, people living in Jersey and buying goods they perhaps can't get hold of in Jersey are maybe paying more tax on those goods than anyone else."
Deputy Gorst responded, saying that he had seen "few examples where VAT is charged."
He added: "The pricing of products is driven by cost and market conditions and consumers are always encouraged to be careful. They can refuse to buy where suppliers are seeking to incorrectly charge VAT."
In 2021, a Jersey lawyer sent a letter to online retailer ASOS to demand they stop charging what he believed were VAT-equivalent prices to islanders, warning of "potential legal proceedings" if not resolved.
Other islanders soon filled his inbox with records of similar experiences.
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