Jersey’s 2022 Budget Bill: Large online retailers required to charge GST to Jersey’s customers starting from 2023

The Jersey States Assembly introduced Bill No. P.100/2021 on the 2022 Finance budget. One of the measures mention that large online retailers will be required to charge GST to Jersey customers starting 2023. “Amazon, in particular, seem to be very onside with collecting GST at the point of exit of whatever country a product is sent from,” said Deputy Susie Pinel. This means that GST will be charged at the point of sale, and remitted directly to the Treasury. Small and medium retailers below the 300,000 GBP registration threshold will not be affected by the change.

The bill also includes measures that would:

• Set the standard income tax rate at 20 percent
• Not require employers to withhold taxes from employees who are under the school-leaving age
• Replace the formula used to calculate an employee’s effective rate for the income tax installment system (ITIS)
• Clarify the corporate income tax deduction rules
• Provide tax relief on loan interest for qualified individuals in a trading company
• clarify tax residence rules for individual taxpayers
• Increase the qualifying income threshold for child daycare to 6,550 GBP from 6,300 GBP
• Increase the tax exemption threshold for individuals and civil partners
• Increase excise taxes on tobacco, spirits, wines, and hydrocarbon oil
• Require GST registration for retailers and online traders with annual sales of 300,000 GBP to Jersey residents, applicable Jan. 1, 2023.

Jersey is a low tax jurisdiction with some of the lowest tax rates in Europe. The Island has no VAT, only Goods and Services Tax (GST), which is set at a standard rate of 5% for almost all goods and services (including online goods worth 135GBP or more). In the explanatory note of the draft Finance Law, it is worth noting that when the bill is passed, it will set the standard rate of income tax for 2022 and amend tax legislation for the purpose of implementing parts of the Government Plan for 2022.

Source: States Assembly Jersey – Minister for Treasury and Resources Bill No. P.100/2021

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