GST glossary

​​Approved importers

See Customs-approved traders

Beneficial ownership

The person who enjoys the benefits of ownership of a specified asset

Body corporate

A body corporate is an organisation that is regarded as a single entity for legal purposes.

Chargeable values

GST will be chargeable on the total value of imported goods. The total value includes other Customs and excise duties, the cost of packaging, freighting, and insurance.

GST will not be collected on consignments with a chargeable value of less than £240.

If a consignment is made up of several items which arrive in Jersey separately, Customs may use total chargeable value of all the items for GST purposes.

Connected persons

Under Article 3 of the GST Law, a connected person is:

• connected with an individual if that person is the individual’s wife, husband or civil partner or is a relative, or the wife, husband or civil partner of a relative, of the individual or of the individual’s wife, husband or civil partner
• connected with a person with whom the person is in partnership, and with the wife, husband, civil partner or relative of any individual with whom the person is in partnership

A company is connected with another company:

• if the same person has control of both companies, or a person has control of one company and persons connected with the person, or the person and persons connected with the person, have control of the other company; or
• if a group of two or more people have control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom the member is connected
• if that person has control of it or if that person and persons connected with that person together have control of it.

Consideration

For the purposes of GST, supplies of goods and services are deemed to be made for a 'consideration'. This is usually an amount of money but it can be for the exchange of an equivalent value of goods and services or another advantage, such as the granting of a right or waiver. In these cases a monetary value (the 'fair market' value) is placed upon the alternative consideration and the GST element is calculated on that value.

GST returns must be submitted in £ sterling. Where foreign currency (including euros) is accepted as the consideration for goods and services, the amount must be converted to £ sterling, using the exchange rate pertaining at the time the supplies were made.

Customs-approved traders

Different rules apply to goods imported into Jersey by a Customs-approved trader. Procedures apply to the Customs clearance of these goods, and the payment of duties and GST, according to the status of the importer - ie whether or not the importer is registered for GST and whether or not the importer is a Customs-approved importer.

GST-registered businesses that are approved importers

GST-registered businesses that are also Customs-approved importers may take possession of goods without making a customs declaration and without paying duties and GST at the point of import. They will be required to make a declaration and make payment of any customs and excise duties within 30 days but they will not have to pay any GST. They will simply record the value of goods imported on their next GST return.

GST-registered businesses that are not approved importers

GST-registered businesses that are not Customs-approved importers will have to make a customs declaration within three days of the goods being imported. They will have to pay any duties and GST that is due before the goods are released. They will be able to reclaim the amount of GST they have paid when making their GST return for the period.

Businesses that are not GST-registered but are Customs-approved importers

Businesses that are not GST-registered but are approved importers will be able to take possession of the goods without making a customs declaration and without making payments of duties and GST at the point of import. They will be required to make a declaration and to pay duties and GST within 30 days of the date of importation. Businesses that are not GST-registered are not allowed to charge GST.

Businesses that are not GST-registered and are not approved importers

Businesses that are not GST-registered and are not approved will have to make a customs declaration of the goods within three days of importation. They will not be able to take possession of goods until all duties and GST have been paid. However, it will be possible to make pre-import declarations and payments to secure immediate release of the goods.

All GST-registered businesses

All GST-registered businesses will be required to retain customs entry forms, any receipts issued by the Customs Service and any other commercial documents necessary to verify their claims for GST credit or refund.

Becoming a Customs-approved trader

De minimis level

The GST De Minimis level is an 'administrative easement' to help Customs Officers clear imported goods as quickly as possible. It allows them not to charge GST on lower value consignments of goods where GST hasn't been accounted for and avoids the costs and paperwork associated with detaining goods pending receipt of payments. 

It is currently £60 and applies to goods imported by private individuals, not businesses.

The de minimis is an administrative provision only, it is not an allowance.

The cost of packaging, freighting and insurance is deemed to be part of the value of the imported goods.

If a consignment is made up of several items and the collective value is above the de minimis limit, GST and duties are levied as though the consignment are one item.

Exempt supplies

These are supplies which, for social or economic reasons are not liable to GST:

• finance
• insurance
• postal services( by postal operator)
• medical and paramedical supplies
• supplies by charities
• child care
• education
• burial and cremation

Normally, the GST (input tax) incurred in relation to the making of these supplies is non-deductible. If you make any such supplies you should read about partial exemption before completing your GST return.

Gratuities

Gratuities, service charges and tips are monies that are given at the discretion of patrons are not subject to GST. A number of business within the hospitality industry add a service charge to their bills which is subject to GST. Monies paid directly by the customer to members of staff are not subject to GST.

Input tax

Input tax is the GST that you pay to your suppliers on goods or services that you buy for your business. You are only allowed to claim input tax on goods and services that are directly related to making taxable supplies to your customers. These include goods for resale, raw materials, processing costs, tools, capital equipment, office equipment and contractors’ fees, but not goods or services diverted for your personal use, or private expenses.

Managed entity

A managed entity is a business which does not have a fully staffed presence in Jersey but which operates by using the services provided by a registered person who is permitted to provide those services by the Jersey Financial Services Authority

Output tax

The GST charged to your customers on your supplies. This is charged on all supplies that are not exempt, zero-rated or remitted supplies.

Partial exemption

GST-registered businesses can claim back the GST incurred on goods and services that are directly related to making taxable supplies to customers, but can't on the cost of supplying goods or services that are exempt from GST, such as:

• financial services
• insurance
• postal services
• medical supplies made by registered professionals or institutions
• supplies by charities

If your business supplies any of these goods or services, you may be partially exempt for GST purposes.

Partial exemption from GST input tax

Postage and packing

Postage and packing charges, whether or not shown separately, are regarded as part of the cost of the basic supply and are therefore liable to GST, unless the supply is an export.

Carriage of a letter or postal packet by a licensed postal operator is exempt from GST, eg stamps.

Place of supply

Goods will be treated as supplied in Jersey if they are in Jersey at the time of supply, or if their supply involves their removal from Jersey. They will be treated as supplied outside Jersey if they are outside Jersey at the time of supply, or of their supply involves their removal to Jersey.

If goods, in the course of their removal from a place in Jersey to a place in Jersey, leave and re-enter Jersey, the removal will not be treated as a removal from or to Jersey.

Services will be treated as supplied if the supplier belongs in Jersey. They will not be treated as supplied in Jersey if the supplier belongs in another country, although there are a number of exceptions to the rule on where services are supplied.

Remitted supplies

Supplies to an international services entity (ISE). Certain businesses within Jersey's financial services are classed as ISEs and have paid a fee for listing. These businesses have been issued with an end-user relief certificate (EURC) which entitles them to receive taxable supplies exclusive of GST.

If you supply any such company, you should ask to see this certificate and note the ISE number alongside the details of the relevant supply in your records. The supply should then be made exclusive of GST. GST incurred in relation to the making of these supplies is deductible.

Reverse charging (services supplied where received)

If you receive supplies of certain services from outside Jersey (as detailed in Schedule 3 of the Goods and Services Tax (Jersey) Law 2007) you are treated as supplying them in Jersey to yourself, if the supply of similar services received from a supplier belonging within Jersey are subject to GST, record the value of Schedule 3 services in Box 5 of your GST return. If you are partially exempt, a GST adjustment may also be necessary.

Service charges

See gratuities.

Standard-rated supplies

Standard-rated supplies are those goods and services that are taxed at a standard rate of their total value in money at the point of sale or importation. All goods and services provided for use or benefit in Jersey attract GST at the standard rate, unless explicitly excluded by legislation as 'exempt' or 'zero-rated' supplies.

Tax point

The tax point is the point in time when a supply of goods or services is treated as taking place (see time of supply). You must account for GST in the accounting period in which the tax point occurs at the rate of tax in force at that time.

If your normal commercial practice is to issue invoices monthly, you should apply to the comptroller for permission to use the date of invoice as the tax point.

Time of supply (tax point)

A supply of goods or services is deemed to have taken place at the earliest of the date on which:

• goods are delivered or made available, or the service is performed
• an invoice for the supply is issued
• any consideration for the supply is received

Goods supplied under a credit agreement are supplied at the time the agreement commences.

Goods applied to a different use are supplied when the goods or service are applied to the different use (eg when goods purchased for business purposes are diverted for private use).

Goods supplied via a machine, meter, or other coin operated device are supplied when the coin, note, or token is removed from the machine.

Services supplied under an agreement that provides for periodic payments are treated as being successively supplied for successive parts of the period of agreement, and each of the successive supply occurs when a payment becomes due or is received, whichever happens first.

Tips

See gratuities.

Value of supply

The value of a supply of goods or services is determined in Articles 31 and 32 of the Goods and Services Tax (Jersey) Law 2007.

The value is deemed to be the net value before GST is added. In the case of imported goods, customs and excise duties and any packaging, freighting and insurance costs are considered to be part of the value, to which GST must be added.

Where a discount is shown on the tax invoice, the value of the supply for GST purposes is the discounted amount.

The value of a supply of goods or services is the cash value of the consideration for the supply.

Articles 31 and 32 of GST (Jersey) Law 2007 on Jersey Law website

Zero-rated supplies

Supplies which, for social or economic reasons are treated as taxable, but are currently taxed at 0%.

These are detailed in the Goods and Services Tax (Jersey) Law 2007, Schedule​ 6. The areas are as follows:

• supply of a dwelling
• supply of land, services, material (in connection with building or a dwelling)
• medicines on prescription (within the meaning of the Health Insurance (Jersey) Law 1967)
• exports
• international services

Schedule 6 of GST (Jersey) Law 2007 on Jersey Law website