Goods and Services Tax (Jersey) Regulations and Appointed Day Act.

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A decision made (10/09/07) regarding: Goods and Services Tax (Jersey) Regulations and Appointed Day Act.

Decision Reference: MD-TR-2007-0092
Decision Summary Title :	Goods and Services Tax (Jersey) Regulations and Appointed Day Act		Date of Decision Summary:	4th September 2007
Decision Summary Author:	Julian Morris – Business Manager		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title :	Goods and Services Tax (Jersey) Regulations and Appointed Day Act		Date of Written Report:	4th September 2007
Written Report Author:	Julian Morris – Business Manager		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Goods and Services Tax (Jersey) Regulations and Appointed Day Act
Decision(s): The Minister agreed to lodge au Greffe on 11th September 2007 the Goods and Services Tax (Jersey) Regulations 200- and the Appointed Day Act.
Reason(s) for Decision: These Regulations (attached) provide a number of details necessary for the Goods and Services Tax (Jersey) Law 2007 to work, and amend that Law in certain areas (for example the registration of taxable persons, exemptions and the zero-rating of supplies). The Appointed Day Act (also attached) appoints 1st January 2008 as the day on which the provisions of the Goods and Services Tax (Jersey) Law 2007 dealing with registration, and other procedural matters, are to come into force. The Act appoints 1st May 2008 for the substantive charge to GST, and the remaining provisions of that Law, to come into force, including Part 2 (Imposition of GST).
Resource Implications: It is estimated that 10 staff will need to be employed in order to administer the tax at an approximate operating cost of £1 million per annum. However, a 3% GST should generate approximately £45 million per annum in taxation revenue net of operational costs.
Action required: Business Manager to instruct the Greffe to make arrangements for the lodging of the Goods and Services Tax (Jersey) Regulations and Appointed Day Act for Tuesday 11th September 2007.
Signature:		Position: Senator Terry Le Sueur, Treasury and Resources Minister
Date Signed: 10th September 2007		Date of Decision (If different from Date Signed):

Goods and Services Tax (Jersey) Regulations and Appointed Day Act.

STATES TREASURY ITEM NO:

REPORT

TREASURY AND RESOURCES MINISTER

GOODS AND SERVICES TAX (jERSEY) REGULATIONS 200-

The States Assembly agreed on 13th May 2005 (P.44/2005) to introduce a broad-based, 3% Goods and Services Tax (GST) as from 2008. The GST Primary Law was approved by the Assembly on 18th April 2007, was included on the Privy Council agenda on 25th July and subsequently given Royal Assent. It was registered in the Royal Court on 17th August.

The above events confirmed the following timetable for the main “core” of supporting legislation in the form of GST Regulations:- consultation document and draft Regulations available 3rd August; consultation for 4 weeks; lodge on 11th September; States debate 23rd October 2007.

The consultation draft included an additional Regulation under Article 94 of the GST Law. This is intended to place an obligation on the part of registered retailers to notify customers of their pricing policy – whether GST inclusive or exclusive.

The consultation draft Regulations also reflected a number of policy decisions made by the Minister in July 2007 which allows some further exclusions from the treatment of GST – child care; burial / cremation services (exemption under Schedule 5); building conversions (zero rating under Schedule 6).

The response to the consultation was low as expected given the nature of the Regulations. The consultation Regulations remain intact other than:- a) to provide exemption under Schedule 5 or private schools that are not approved as charities (this provides equity of treatment between private schools (approved or otherwise) and states schools; and b) extend zero rating for hotel accommodation as a transitional measure until the end of 2008 (this provides equity of treatment for hotels providing accommodation to tour operators under long term contracts and the same supply by hotels directly to customers).

Regulations under Part 12 of the GST Law relating to Financial Services Industry (FSI) / International Services Entities (ISE) will be dealt with separately under the following timetable: - first draft available on 22nd August; lodge 9th October; States debate 20th November 2007.

Financial and Manpower implications

It is estimated that 10 staff will need to be employed in order to administer the tax at an approximate operating cost of £1 million per annum. However, a 3% GST should generate approximately £45 million per annum in taxation revenue net of operational costs.

7 September, 2007