Member states which allow the relief must ensure that it does not cause competitive distortion or allow VAT abuse. Jersey introduced a Goods and Services Tax (GST) of 3% in 2008 which increased to 5% in 2011 on the majority of goods and services supplied in Jersey for local use, including imports, GST can be claimed back on exports. Please note, if you order multiple items that arrive in one shipment, we will treat this as one consignment. For more information on VAT, please read our further advice. [5] A study by the Kantar Group found that in 2009 there was an 18% increase in the volume of online CD sales. VAT: 8.18%. London, United Kingdom. This group published in 2006 a report High Street Britain 2015 that covered many issues affecting retail in the UK. However, the Channel Islands, whilst having no direct influence on the tax policies of the UK government, do regularly discuss taxation issues with the UK Treasury and HM Revenue and Customs as proven by the discussions that took place in 2006 regarding Jersey's new Fulfilment Industry Policy. "[16], In 2005 a group of UK retailers with the help of the UK trade body the Forum of Private Business gave evidence[17] to the All-Party Parliamentary Small Shops Group. However, as a result of EU Council Directive 2009/132/EC, an optional exception is allowed on shipments of a low value to speed up the transit of low value goods which might otherwise be delayed by customs and also reduce the cost of tax collection where it might not be practicable. The Channel Islands have no say over the operation of Low Value Consignment Relief as they are not members of the EU and the relief is granted to the importer of the goods and not the exporter. If you import goods from the Channel Islands or special territories you will be liable for import VAT in the same way as you would for those imports detailed in paragraph 1.5. Please note, VAT relief was previously allowed for goods less than £15 but this is no longer the case and whilst some VAT exemptions do exist, most items require VAT to be paid. The rules are the same as those applying when buying goods online from a non-European Union country.. Customs duty is not due.. In relation to LVCR and the Channel Islands it recommended that "The UK Government should immediately apply the lowest threshold applicable for the relief of low value consignments permissible in the directive, which is currently 10 euros (approximately £7) – this would eliminate the vast majority of exploiting trade almost immediately" it also recommended that "The enforcement, by government bodies like Customs and Excise, of VAT should be reviewed to ensure a level playing field" [18]. Please note, whilst VAT relief was previously allowed for goods less than £15, this is no longer the case. [16] VAT abuse is defined as transactions that, "notwithstanding formal application of the conditions laid down by the relevant provisions of the Sixth Directive and of national legislation transposing it, result in the accrual of a tax advantage the grant of which would be contrary to the purpose of those provisions. Vehicle - a motor car, lorry, van used for transporting goods or people or anything that runs on the road and requires to be registered When goods are imported into the EU from a non-EU territory, they are generally subject to a VAT (currently 20% in the UK for most goods). If your customer is repsonsible for import GST (if it applies) then there should be no issue for you. If you are ordering or receiving items from outside of the Channel Islands, it’s important you understand the regulations surrounding GST and when it is payable. Total online retail spending online grew by 33.4% in 2007 to a record £10.9bn and UK online sales are predicted to reach £28.1bn by 2011 – 8.9% of all retail sales. You'd basically be declaring anything over your allowance, if you're an honest type! Jersey's Economic Development Minister Philip Ozouf Jr announced in March 2006 a New Jersey Fulfilment Policy[25] intended to govern the fulfilment industry in the Island and stated that companies who export to the UK by mail order must first obtain a licence. Here you’ll find the details of what to do. From a UK point of view this will work, and yes you will need evidence of export. In 2011 the UK Treasury announced that from 1 April 2012, LVCR would no longer apply to goods imported from the Channel Islands. Regardless of the value, you must pay VAT on the item. Use the trade tariff link below to check duty rates. A free Jersey Post account allows you to access our online services and buy postage online. section 4. Copyright © Jersey Post 2020. This means they do not charge VAT on purchases but there is a free movement of industrial and agricultural goods in trade between the Islands and the Union. This administrative relief is known as low-value consignment relief (LVCR). [11], In recent years, retailers, politicians and academics in the United Kingdom have claimed that this situation affords an unfair and damaging economic advantage to retailers based in the Channel Islands. Knowing all costs upfront and clearly communicating with your customer how it will be paid will result in a smoother shipping experience. Duty on UK sales to Channel Islands. There are two types of duty chargeable within the Bailiwick of Guernsey. JERSEY Three different duties and taxes are collected on imported goods: excise duty on alcohol, tobacco and fuel; Common Customs Tariff (CCT). [21] However, the UK Government took no direct action, leaving the Channel Islands governments to regulate the trade internally. What is the rate of Import VAT? We are currently changing our freight providers and have been advised by the new company that duty is applicable on goods being shipped from the mainland to the Channel Islands over the value of £250. The advantage was highlighted by Matt Moulding, CEO of The Hut Group, who was quoted in The Guardian as saying "If you aren't offshore you couldn't possibly compete. Import Duty: 9%. VAT must be paid. [citation needed] They say that the UK Government could have stopped the growth of LVCR trade by taking legal action against major retailers under Halifax, or by using its discretion to lower the threshold to €10, remove mail order goods from the relief or request the Channel Islands lose the right to benefit from the relief in relation to DVDs and CDs which is known as a 'derogation'. Import Duty: 12%. The most important thing to note, is that you will have to pay VAT on the purchase price (the UK's Standard rate of VAT is currently 20.0%). In a written answer to Janet Dean MP on 18 June 2008 the then Financial Secretary to the Treasury Jane Kennedy stated that three quarters of the VAT avoided due to LVCR "is attributable to imports from the Crown dependencies". If you need to pay import duty on a delivery from China, UK customs will automatically let Royal Mail or your courier know, and they’ll contact you. However, for consignments from certain south coast ports a combined ‘Consign… "[12] The book Last Shop Standing[13] by Graham Jones (one of the founders of Music Distributor Proper Distribution) details the detrimental effect VAT-free mail order has had on UK music retail, whilst specialist Internet retailers such as freakemporium.com have cited VAT-free mail order as the main factor in their demise.[14]. Threshold: GBP 15. VAT tax must be paid on most items sent from Jersey to the UK. Historically, the bulk of mail order goods sold through the Channel Islands were manufactured in the UK, exported to the Islands and then mailed back into the UK VAT-free. Some UK businesses have claimed that this kind of VAT avoidance is potentially "abusive", in terms characterised by the 2006 Halifax Judgement. As the Islands do not have their own VAT, a UK business should not be charged Channel Islands VAT on any goods, but may be charged the standard rate of UK VAT on importing goods into the UK. From a Channel Island point of view you may need to consider if any GST applies. You'd be bringing goods into the UK from outwith the EU, so the following rules apply: https:/…arrivals-from-outside-the-eu. Principal Ports. For more information on VAT, please read our further advice. Jersey. Another group of retailers, called the Retailers Against VAT Abuse Schemes (RAVAS) have filed a complaint with the EU Directorate of Taxation, alleging that the UK Government has breached the Directive covering LVCR by failing to take action to stop abuse. These retailers are able to offer the same products as UK retailers but at significantly lower prices. To get an idea on how much you may need to pay, please check The States of Jersey Customs and Immigration Service website for further information. This ‘special’ status … EU travel from January 2021. Avoid issues at customs. Threshold: USD 800. For goods exported from the UK to the Channel Islands a non-statistical export declaration is required see section 2.1 of UK Trade Tariff - Exports. Due to pressure from UK retailers and trade body the Forum of Private Business (FPB), the Government of the United Kingdom mentioned the LVCR issue in the 2006 Budget wherein they stated "In 1984, a VAT-free threshold on imports of small commercial consignments from outside the EU was introduced at a level of £18, as an administrative relief. British group of islands off the northwest coast of France. As businesses based in the Channel Islands have become more sophisticated, however, goods are now imported from the Far East, including electronics and accessories. Included in the import charges are duties, excise duties and value added tax as well as various other charges that may be added when a good is imported. Your cost price would be above what people would be retailing at. In 2008 the Fulfilment Group together with the Guernsey authorities created a Code of Conduct which remains unavailable on the internet but can be obtained from the Guernsey Commerce and Employment Department of the States of Guernsey. If you are importing a car that you have owned in Jersey (and have owned for more than 6 months) and are moving from Jersey to the UK, there is no … Furthermore, Kantar found that 95% of such sales are low enough that VAT charges were not applied to them. Sending items to the UK? If you are looking at buying a car or other vehicle from one of the Channel Islands, then don't be put off because it will need to be declared to Customs, before you can register it with the DVLA. This notice is intended for anyone who owns or is responsible for a pleasure craft that sails to or from locations outside the UK. You can declare and pay for your goods before they arrive by creating a pre-arrival declaration online via The States of Jersey Customs and Immigration Service website (please note, you must first set up an account in order to do this). How much import duty you will pay will depend upon the value and type of goods being imported as every product has a different duty percentage rate. Get in touch to find out more. Log in. Threshold: EUR 20. Buying goods online from Mount Athos, the Canary Islands, the French overseas departments and the Åland Islands . Filters. [2], The United Kingdom is a member of the EU and, as a member state is obliged to apply VAT to a range of goods (see European Union value added tax). Postal Headquarters When sending items outside of Jersey, please ensure they are presented with the correct forms and customs declarations necessary to avoid custom delays at their final destination. From the 1st January 2021, the 'Other Goods' allowances will also apply to passengers importing goods from any place other than the UK, Isle of Man and Jersey. [23] It was announced on 4 October 2012 that Condor Logistics would close its operations with the loss of about 180 jobs (110 in the UK, 50 in Jersey and 20 in Guernsey). Your shipper should give you a Consignment Line Code (CLC) reference number to make a declaration and pay online or by visiting Customs at Maritime House. As Hong Kong is not part of the EU, importing from here to the UK requires VAT and duty to be paid. LVCR was not limited to the Channel Islands, and continues to apply to all low-valued imports into the EU from other countries outside of the EU. All items sent to Jersey from the UK should also have a completed and signed customs declaration form (CN22 or CN23) attached in order to comply with customs requirements. [citation needed] The refusal to grant further licences was only applied to CDs and DVDs – an industry that is almost entirely based offshore in the Channel Islands already – and licences for other products have not yet been controlled to the same degree. Thursday 10 November 2016, 11:59am. It looks to address these concerns through the mutual co-operation of the Guernsey Mail Order and Fulfilment Group and lays down similar trade restrictions to those covered by the Jersey Licence Scheme although unlike that scheme, the only sanction available to those breaking the code appears to be exclusion from the Fulfilment Group. If you import a vehicle from outside the EU, you'll need to pay GST at 5% and the Common Customs Tariff (CCT). VAT is due on any commercial item sent from Jersey to the UK including anything sold by members of the public (for example, anything you sell on ebay). From the 1 st January 2021 import duty could be liable on goods imported from any place other than UK, Isle of Man and Jersey. You need a commodity code to ensure that you’re paying the right amount of tax and duty. In fact exports from the Channel Islands account for a very small percentage of the CD/DVD market".[5]. To find out more information on paying your GST and avoiding customs delays please visit The States of Jersey Customs and Immigration Service and read their GST quick guide. The TPA is a formal agreement between Ireland, United Kingdom (includes Channel Islands) and France, which allows certain categories of horses to move between these three countries without prior inspection or certification. Channel Islands. Jersey Post In 2007 owing to the bad press generated by the expansion of the fulfilment industry in the Channel Islands, the government of Jersey announced that it had asked certain UK retailers to cease their operations there and that no further licences would be granted for CD and DVD retailers. VAT is also due on any gift sent from Jersey to the UK that is valued over £39 (including the postage and packing). [5], The Channel Islands consist of the Bailiwicks of Guernsey and Jersey, Crown dependencies which are self-governing but historically linked to the Crown. [25] Like all EU tax regimes, LVCR is ultimately policed by the EU. Please could you advise us on this? Regardless of the value, you must pay VAT on the item. Additionally, be aware that the recipient of the item will be asked to pay the applicable 20% VAT along with an additional £8 Royal Mail collection charge at the point of delivery. 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