VAT and GST on goods sold from UK to Jersey

Original Post:

T

tertius

Free Member
Jul 5, 2021
60
13
  • #1
    When making a B2B sale from UK to Jersey, I understand that the sale is zero-rated for UK VAT, but the courier is charging a fee for 'Local VAT' - if I pay this, which box on the VAT return should it be posted to - or should I choose the option for the recipient to cover the charges? (would they expect this, or be surprised?)
    Can provide more context if necessary :)
     
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    D

    Deleted member 351022

  • #2
    Hi tertius

    You are correct that an export from the UK is zero rated for VAT.

    Imports into Jersey over £135 are subject to GST. Either you or you customer must pay this to get the goods released from custom. It’s worth checking if your business customer is already registered to account for GST on their GST return. If this is the case they may be able to account for the GST themselves.
    I would expect that your customer will be used to GST in the same way as UK business expect to be charged VAT.

    As UK VAT and Jersey GST are administered by separate countries you cannot put GST or any other Countries VAT equivalent for that matter on your UK VAT return.

    If you pay the GST this is a cost to you that isn’t usually recoverable other than by increasing your sales price to cover it. You cannot however charge your customer GST if you are not registered for GST in Jersey.

    if you intend to trade regularly in Jersey it is possible for non Jersey businesses to register.
     
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    T

    tertius

    Free Member
    Jul 5, 2021
    60
    13
  • #3
    Thanks - that confirms what I was thinking.
    My final question, when I account for the Jersey GST cost in Xero (which I realise is not recoverable) should it be posted as 'No VAT' (i.e. doesn't appear on the VAT return at all), or 'Zero Rated Expenses' (shows on the VAT return but at 0%)
     
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