Overseas e-commerce sales to consumers in Jersey subject to GST from July 2023
With effect from 1 July 2023, Jersey has introduced Goods and Services Tax (GST) on sales of e-commerce goods made to consumers in Jersey by non-resident businesses. The rate of GST chargeable is 5%.
There is a registration threshold of £300,000. Once the threshold has been exceeded a non-resident supplier must register for GST.
The purpose of the new legislation is to enable high street retailers in Jersey (who must charge GST on almost all sales) to be more competitive. The move mirrors similar legislation introduced in relation to VAT in the UK and the EU during 2021.
When purchasing goods from overseas retailers who become registered for GST, consumers will pay GST to the supplier (vendor) at the point of sale. The goods will then be imported to Jersey with no requirement to pay import GST at the point of entry.
Who must register for GST
Any overseas retailer, or online market, who sells goods to non-business consumers in Jersey and those goods are despatched from an overseas location to Jersey, must register for GST in Jersey if their turnover from such sales exceeds, or is likely to exceed, £300,000 per annum. Non-resident retailers may opt to register for GST if they do not reach the statutory threshold, but registration is mandatory for those who do.
Overseas retailers will include sellers who supply goods via their own website, a third-party website or through catalogue or similar sales. The essence of such a business is that it does not have a physical presence in Jersey but supplies and transports, or arranges to transport, goods to private consumers in Jersey.
The new rules also apply to online marketplaces that facilitate the sale of goods from an overseas supplier to a private individual in Jersey. An online marketplace is defined in the GST legislation as a website, or any other means by which information is made available over the internet, which facilitates the sale of goods through the website or other means by persons other than the operator.
An online marketplace facilitates the sale of goods if it allows a person to:
- offer goods for sale;
- enter into a contract for the sale of goods.
Overseas retailers and online marketplaces can register for GST online.
In addition, the Jersey government has reduced the GST De Minimis Level that applies to unaccompanied goods imported by private individuals to Jersey. From 1 July 2023, if GST has not been accounted for at point of sale, all imported goods will be subject to import GST where the value of the imported goods exceeds £60. This threshold has been reduced from £135 and will eventually be removed altogether.