Starting July 1st 2023, new GST obligations will apply for overseas retailers supplying goods to Jersey-based consumers. The new regulations were originally due to be introduced on January 1st 2023, but were postponed by the local government to give traders more time to prepare for the new rules.
To create a level playing field between local and non-resident businesses, Jersey authorities are imposing GST registration and collection on ecommerce sellers once they reach a certain threshold.
As such, non-resident online businesses will need to register and account for GST on their B2C supplies as soon as the value of their sales to Jersey private individuals exceeds £300,000 per annum.
Additionally, all goods imported into Jersey when sold to consumers will be subject to GST where the value of the imported goods exceeds GBP60. However, the authorities are planning to scrap this threshold as a whole in the future. Hence, under these new rules, where GST has not been collected at the point of sale, import GST will instead be applied upon importation.
By making B2C sales of imported goods subject to GST at the point of sale, the Jersey authorities anticipate that fewer parcels will be held at customs until GST is paid for which should allow for faster delivery of parcels to Jersey consumers.
Once the new rules begin, any offshore online business – including marketplaces – will need to register for Jersey GST if their annual turnover exceeds GBP300,000 per year. Alternatively, overseas retailers can also opt to register for GST on a voluntary basis. Customers should then be charged 5% GST at the point of sale.
By making sales of imported goods by overseas sellers subject to GST, Jersey is aligning its tax legislation with jurisdictions such as the EU and the UK, where new ecommerce VAT has also brought non-resident traders within the scope of local VAT regulations.
