GST De Minimus level for importations of unaccompanied goods for personal use: Reduction

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A decision made on 24 July 2020

Decision Reference: MD-TR-2020-0086
Decision Summary Title:	Reduction in the GST De Minimis level for importations of unaccompanied goods for personal use.		Date of Decision Summary:	19 June 2020
Decision Summary Author:	Comptroller of Revenue		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Implementation of the Minister’s decision to reduce the GST De Minimis level on the value of Unaccompanied Goods for Personal Use		Date of Written Report:	19 June 2020
Written Report Author:	Comptroller of Revenue		Written Report : Public or Exempt?	Public
Subject: Confirmation of decision to reduce the De Minimis from £240 to £135; to specify the date of the reduction; and to ask the Comptroller of Revenue and the Agent of the Impôts to make arrangements to give effect to the same.
Decision(s): The Minister approved the report and asked the Comptroller of Revenue to make a GST Direction to give effect to the proposed changes, with effect from 1 October 2020; and to request the Agent of the Impôts to make the necessary operational preparations.
Reason(s) for Decision: Ministerial approval is required to make the necessary legal changes.
Resource Implications: Funding is already provided in the Government Plan: £150k for 2020; and £200k indicated for subsequent years.
Action required: The Comptroller of Revenue to make the necessary GST Direction to give effect to the reduction from 1 October 2020. The Agent of the Impôts to make the necessary operational preparations.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision:

GST De Minimus level for importations of unaccompanied goods for personal use: Reduction

Treasury and Exchequer

Ministerial Decision

Implementation of the Minister’s Decision to reduce the GST de Minimis Level on the Value of Unaccompanied Goods for Personal Use

Purpose of Report

1. To ask the Minister to confirm the Government’s plan – set out in the Government Plan 2020-2023 – to reduce the GST De Minimis level to £135, aligning it for the time being with the Customs De Minimis level applying in respect of importations of goods for personal into the new customs union of Jersey, Guernsey, the Isle of Man and the United Kingdom.

Background

2.1 The Government Plan 2020-2023 set out the Government’s intention to reduce the De Minimis Level, from £240 to £135, with effect from 1 July 2020.

2.2 In the light of the Coronavirus pandemic, the Minister decided to ask the Comptroller of Revenue and the Agent of the Impôts to delay implementation, provisionally until 1 January 2021. This was largely to assist the Agent’s staff in the Jersey Customs & Immigration Service (JCIS) to manage the additional workload arising from the pandemic alongside Brexit preparations. It also served to help islanders during the period when many retail stores were closed and importations arising from personal “online shopping” were expected to increase.

2.3 In the light of the Agent’s assessment of the workloads now facing JCIS – and to support the recovery of Jersey’s retail sector – it is now proposed that the planned reduction in the level takes place, with effect from 1 October 2020.

2.4 The Comptroller of Revenue will give effect to the Minister’s decision by issuing a GST Direction under Article 56(2) of the Goods and Services Tax (Jersey) Law 2007.

3. Recommendations

It is recommended that, to give effect to the planned reduction in the GST De Minimis level set out in the Government Plan 2020-2023, the Minister asks the Comptroller to make a GST Direction under Article 56(2) of the GST law; and that the Minister asks the Agent of the Impôts to give that Direction effect from 1 October 2020.

4. Reasons for Decision

To implement the planned reduction in the GST De Minimis level, 3 months later than originally intended and 3 months earlier than subsequently announced, in the light of latest information available and to support the recovery of Jersey’s retail sector.

5. Resource Implications

Funding of £150,000 for 2020 (and indicative funding of £200,000 yearly thereafter) was allocated in the Government Plan to implement this measure.

Report author: Comptroller of Revenue	Document date : 19 June 2020
Quality Assurance / Review : Head of Financial Governance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2020-0086 - Reduction in the GST De Minimis level for importations of unaccompanied goods for personal use
MD Sponsor: Comptroller of Revenue