Jersey – GST Policy Update

What is GST?

Jersey has extended their Goods & Services Tax (GST) to online transactions, which includes e-commerce platforms such as Amazon.  The current GST rate is set at 5%, and is payable to Revenue Jersey (Jersey Tax Office)[1].

GST is applied to the full consignment value, including any other taxes/charges/delivery fees etc.

Do I need to register for GST?

At the moment, GST registration is only mandatory for overseas sellers who have an annual turnover of £300,000 in Jersey.  It is possible to voluntarily apply for GST.  However, you would then need to comply with GST filing requirements, and also take responsibility for collecting and remitting GST[2].

If you do not register for GST, you will not be responsible for collecting GST from your customers.  Instead, your customers will need to pay GST at the point of customs clearance in order to receive their goods.

Some platforms such as Amazon will facilitate the collection and remittance of GST at the point of sale – please refer to the section on Amazon marketplace collection.

GST threshold

All GST registered businesses must collect and remit 5% of the transaction value.

At the time of writing, an exemption threshold applies for non-registered businesses (referred to by Revenue Jersey as the de minimis).  The threshold is currently set at £60. 

This means that all transactions that are 1) conducted by a non-registered business and 2) are under £60 are not liable for GST. 

What happens to existing zero-rated sales shipped from the UK?

The policy change does not affect VAT on UK-Jersey sales (where inventory is stored in the UK for shipment to Jersey) – VAT is still zero-rated[3]. 

However, if VAT is charged on a UK-Jersey sale, GST will be charged on top of the VAT.  GST is applied to the full consignment value – see What is GST?

Amazon marketplace collection

Amazon will automatically collect and remit GST at a rate of 5% for any sales £60 or under, in line with the GST-registered business requirement outlined above (GST threshold).  This is done at the point of sale – customers will receive their goods directly, without requiring any further payment.

Any transactions over £60 will be either be the responsibility of the seller (if GST registered), or paid for by the customer (if not GST registered).

What do I need to do?

Depending on your specific situation, no further action may be required at the moment.  We have provided a range of different scenarios as examples to show how the GST policy change may affect your sales.

Selling on Amazon.co.uk, with Amazon FBA

If you are selling on 1) Amazon.co.uk, 2) are using Amazon FBA, and 3) your item is listed as under £60, you will need to ensure that your product listings are priced correctly:

• Your item is listed at £50 on Amazon.co.uk
• Amazon automatically calculates 5% of the listing value as GST (£2.50)
• Your customer pays £50
• The item is shipped via Amazon FBA
• You receive £47.50, after GST has been deducted from the transaction and remitted to Revenue Jersey
• Your customer receives the item directly at their address

Selling on all platforms, without Amazon FBA

If you are using any sales platform (including Amazon.co.uk), and are using your own logistics provider (i.e. not Amazon FBA):

• Your item is listed at £50 on Amazon.co.uk OR your own website
• Your customer pays £50 at the point of purchase
• The item is shipped using your own logistics provider
• You receive £50 – no GST is deducted
• Your customer receives the item directly at their address

Selling on all platforms, any logistics provider, transaction value over £60

Regardless of sales platform, if the transaction value is over £60, GST will be applied:

• Your item is listed as £65 on Amazon.co.uk OR your own website
• Your customer pays £65 at the point of purchase
• The item is shipped via Amazon FBA OR your own logistics provider
• You receive £65 – GST is not deducted at the point of sale
• Your customer will receive a notification from Revenue Jersey requesting a GST payment of £3
• Your customer pays £3 to Revenue Jersey
• Their item is released from customs, and is sent to their address

[1]https://www.gov.je/TaxesMoney/GST/GSTCustomers/pages/gstquickguide.aspx#:~:text=About%20GST,for%20local%20use%2C%20including%20imports

[2] https://www.gov.je/TaxesMoney/GST/Businesses/Registration/Pages/ShouldIBe.aspx

[3]https://www.gov.je/TaxesMoney/GST/GSTCustomers/pages/reclaimvat.aspx#:~:text=You%20can%20buy%20goods%20from,the%20internet%20or%20mail%20order