Tuesday 23 December 2008

Do you pay VAT in Jersey?

I just noticed that one of our eCommerce websites seems to attract a little bit of traffic for queries such as "do jersey pay vat", and having had a quick look at the information which comes up for said search, thought I would write a quick post.

If you are selling TO Jersey from the mainland, the answer is NO. Jersey is outside of the VAT area (as are all the Channel Islands), so ideally you should take the VAT off (nigh impossible for people to claim back afterwards). I personally avoid buying from any retailers (online or otherwise) who do not do so.

If you are buying FROM Jersey, then there should be NO VAT charged on orders upto £17.99 in value (Small Value Exemption). Orders above this ARE liable to VAT, although very technically speaking it could be construed that it is the duty of the recipient to pay said tax - typically merchants will collect it from you at checkout and pay it (e.g. when goods are dispatched from Amazon's merchant in Jersey). If you are buying from an eCommerce site in Jersey, do check how they handle VAT on high value goods, though - you don't want to get a bill from HMRC!

There you go, thats the situation nicely cleared up!

Now you know, go to visit Jersey Craft Shop - they don't charge VAT on anything 17.99 or under!

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