The four main islands are Jersey, Guernsey, Alderney and Sark. Additionally, be aware that the recipient of the item will be asked to pay the applicable 20% VAT along with an additional £8 Royal Mail collection charge at the point of delivery. Import Duty: 12%. In order to calculate the percentage of duty payable you can ask your UK freight agent or work it out yourself using the online tariff from the UK government website . As businesses based in the Channel Islands have become more sophisticated, however, goods are now imported from the Far East, including electronics and accessories. You can declare and pay for your goods before they arrive by creating a pre-arrival declaration online via The States of Jersey Customs and Immigration Service website (please note, you must first set up an account in order to do this). [5], The Channel Islands consist of the Bailiwicks of Guernsey and Jersey, Crown dependencies which are self-governing but historically linked to the Crown. JE1 1AA. VAT must be paid. The UK tariff (www.gov.uk/trade-tariff) will be used to assess what duty is due. If you are a local business that regularly sells and sends items to the UK or internationally, we can also provide professional support and assistance with VAT clearance. If the relief continues to be exploited by businesses using offshore locations, the Government will consider changes to prevent this type of behaviour". Duty on UK sales to Channel Islands. [1] The UK currently sets the limit to £15 for commercial goods. There is no requirement to account for VAT on imports into the UK from the Islands in the same way as from other EU states. Here you’ll find the details of what to do. They will attach a customs docket to your package with details of the amount of import charges owed. VAT is also due on any gift sent from Jersey to the UK that is valued over £39 (including the postage and packing). Under this agreement the Channel Islands are not part of the European Union but are part of the customs territory of the union. The Channel Islands have no say over the operation of Low Value Consignment Relief as they are not members of the EU and the relief is granted to the importer of the goods and not the exporter. [21] However, the UK Government took no direct action, leaving the Channel Islands governments to regulate the trade internally. You'd basically be declaring anything over your allowance, if you're an honest type! Paris, France. This is charged on all goods imported from outside the European Union (EU). Filters. VAT: 8.18%. All items sent to Jersey from the UK should also have a completed and signed customs declaration form (CN22 or CN23) attached in order to comply with customs requirements. If you import goods from the Channel Islands or special territories you will be liable for import VAT in the same way as you would for those imports detailed in paragraph 1.5. If the total value of your consignment (including any shipping, insurance, packaging or custom costs) exceeds £135 you must declare it and pay GST. The UK Government stated that any action to stop the LVCR trade would damage the UK post office. How much duty free can you bring into the Channel Islands? They are Scheduled Territories and associate members of the EU, within the EU Customs area, but outside its fiscal (VAT) area. When goods are imported into the EU from a non-EU territory, they are generally subject to a VAT (currently 20% in the UK for most goods). Existing subscriber? This content requires a Croner-i subscription. The advantage was highlighted by Matt Moulding, CEO of The Hut Group, who was quoted in The Guardian as saying "If you aren't offshore you couldn't possibly compete. Introduction Summary. Import VAT is applied to all purchased goods worth more than £15; all gifts worth more than £40; and all goods, regardless of value, which are sent to the UK from the Channel Islands. For goods being imported by post: An Post will calculate the amount of charges you owe. Buying goods from Gibraltar, the Canary Islands or the Channel Islands; How to locate your goods following arrival to Ireland; How to pay your import charges ; How to pay your import charges. Alternatively, you can send your item without pre-paying and the recipient will need to pay VAT to claim the item. Principal Ports. To get an idea on how much you may need to pay, please check The States of Jersey Customs and Immigration Service website for further information. For more information on VAT, please read our further advice. Avoid issues at customs. You need a commodity code to ensure that you’re paying the right amount of tax and duty. The Guernsey authorities also claim that three of the largest retailers on the Island have agreed to voluntary caps on the amount of VAT that they can avoid by way of LVCR. How much import duty you will pay will depend upon the value and type of goods being imported as every product has a different duty percentage rate. Channel. Postal Headquarters [citation needed] They say that the UK Government could have stopped the growth of LVCR trade by taking legal action against major retailers under Halifax, or by using its discretion to lower the threshold to €10, remove mail order goods from the relief or request the Channel Islands lose the right to benefit from the relief in relation to DVDs and CDs which is known as a 'derogation'. [25] Like all EU tax regimes, LVCR is ultimately policed by the EU. All rights reserved. NY, United States. You’ll be contacted by Royal Mail, Parcelforce or the courier company explaining how to pay any VAT, duty and fees for dealing with customs. However, as a result of EU Council Directive 2009/132/EC, an optional exception is allowed on shipments of a low value to speed up the transit of low value goods which might otherwise be delayed by customs and also reduce the cost of tax collection where it might not be practicable. Thursday 10 November 2016, 11:59am. UK Duty. [22], In early 2010 the UK Treasury issued a statement to The Guardian that said "The implication that businesses are simply setting up on the Channel Islands to take advantage of this relief is not true. The smaller populated islands are Herm, Jethou, Brechou and Lihou. If you are importing a car that you have owned in Jersey (and have owned for more than 6 months) and are moving from Jersey to the UK, there is no … Pre-paying VAT is the quickest and cheapest option to get items to the UK. Regardless of the value, you must pay VAT on the item. The Channel Islands are treated as being outside of the EU. "[12] The book Last Shop Standing[13] by Graham Jones (one of the founders of Music Distributor Proper Distribution) details the detrimental effect VAT-free mail order has had on UK music retail, whilst specialist Internet retailers such as freakemporium.com have cited VAT-free mail order as the main factor in their demise.[14]. For more information on VAT, please read our further advice. ", https://en.wikipedia.org/w/index.php?title=VAT-free_imports_from_the_Channel_Islands&oldid=940150291, Articles with unsourced statements from August 2014, Articles with unsourced statements from January 2011, Articles with unsourced statements from April 2011, Creative Commons Attribution-ShareAlike License, This page was last edited on 10 February 2020, at 20:46. JERSEY The VAT rate you are charged on imported goods depends on whether your business is … Guernsey has, like Jersey, taken steps to protect its international reputation and protect the viability of the fulfilment industry in the Bailiwick. Your shipper should give you a Consignment Line Code (CLC) reference number to make a declaration and pay online or by visiting Customs at Maritime House. Want to read more? British group of islands off the northwest coast of France. Threshold: GBP 15. [3][4] The reasons for the success of internet retail are varied, covering factors related to convenience, time saving, breadth of choice, and price. He argued that this was to ensure that the Island was not taken advantage of by UK business and that tangible economic benefits would remain in the Island. A free Jersey Post account allows you to access our online services and buy postage online. Second, it must also be apparent from a number of objective factors that the essential aim of the transactions concerned is to obtain a tax advantage. From a Channel Island point of view you may need to consider if any GST applies. Three different duties and taxes are collected on imported goods: excise duty on alcohol, tobacco and fuel; Common Customs Tariff (CCT). In 2011 the UK Treasury announced that from 1 April 2012, LVCR would no longer apply to goods imported from the Channel Islands. [2], The United Kingdom is a member of the EU and, as a member state is obliged to apply VAT to a range of goods (see European Union value added tax). Import Duty Charges The general rule is that import charges are to be paid when importing goods to the country in accordance with the customs tariff that has legal validity in Iceland. Import duty is not payable on vessels imported from the Channel Islands into the UK, regardless of the length of the vessel, due the ‘special’ status that the Channel Islands have as part of the Customs Territory but not part of the VAT territory. To find out more information on paying your GST and avoiding customs delays please visit The States of Jersey Customs and Immigration Service and read their GST quick guide. This means they do not charge VAT on purchases but there is a free movement of industrial and agricultural goods in trade between the Islands and the Union. Buying goods online from Mount Athos, the Canary Islands, the French overseas departments and the Åland Islands . If your customer is repsonsible for import GST (if it applies) then there should be no issue for you. Due to pressure from UK retailers and trade body the Forum of Private Business (FPB), the Government of the United Kingdom mentioned the LVCR issue in the 2006 Budget wherein they stated "In 1984, a VAT-free threshold on imports of small commercial consignments from outside the EU was introduced at a level of £18, as an administrative relief. Please note, if you order multiple items that arrive in one shipment, we will treat this as one consignment. Many low-valued exports of goods from the Channel Islands to the United Kingdom were exempt from value added tax (VAT) until April 2012, due to the operation of an EU tax relief called low-value consignment relief (LVCR). VAT is due on any commercial item sent from Jersey to the UK including anything sold by members of the public (for example, anything you sell on ebay). In fact exports from the Channel Islands account for a very small percentage of the CD/DVD market".[5]. If you import a vehicle from within the EU, you'll need to pay GST at 5% on the value of the vehicle at import. Passengers aged 17 years and over arriving from non-EU countries may bring the following items into the UK for personal use without paying UK tax or duty. The Channel Islands (the islands of Jersey, Guernsey, Alderney, Sark and their respective dependencies) are part of the EUfor Customs purposes but are not part of the fiscal (VAT) territory.All goods imported from the Channel Islands must be declared to Customs and are liable to import VAT. VAT is due on any commercial item sent from Jersey to the UK including anything sold by members of the public (for example, anything you sell on ebay). These retailers are able to offer the same products as UK retailers but at significantly lower prices. Jersey Customs and Immigration say they see people bringing in … When goods are imported into the EU from a non-EU territory, they are generally subject to a VAT (currently 20% in the UK for most goods). London, United Kingdom. Channel Islands. around £85 million per year. The move was blamed on changes to LVCR affecting the Channel Islands.[24]. Jersey Post There are two types of duty chargeable within the Bailiwick of Guernsey. [16] VAT abuse is defined as transactions that, "notwithstanding formal application of the conditions laid down by the relevant provisions of the Sixth Directive and of national legislation transposing it, result in the accrual of a tax advantage the grant of which would be contrary to the purpose of those provisions. From the 1 st January 2021 import duty could be liable on goods imported from any place other than UK, Isle of Man and Jersey. The TPA is a formal agreement between Ireland, United Kingdom (includes Channel Islands) and France, which allows certain categories of horses to move between these three countries without prior inspection or certification. The Channel Islands have a special relationship with the United Kingdom as set out in Protocol 3 to the United Kingdom's Act of Accession 1972, which formed part of the Treaty of Accession. Extent: Jersey Updated: 8 June 2020 _____ Words you may need to know. They’ll tell you how much you need to pay, and when it’s due, so you won’t need to worry about calculating it yourself (unless you think a mistake has been made). Jersey. The maximum allowed value of the goods for which the exception applies is set by the importing state, and can be between €10 and €22. Please note, VAT relief was previously allowed for goods less than £15 but this is no longer the case and whilst some VAT exemptions do exist, most items require VAT to be paid. From a UK point of view this will work, and yes you will need evidence of export. It looks to address these concerns through the mutual co-operation of the Guernsey Mail Order and Fulfilment Group and lays down similar trade restrictions to those covered by the Jersey Licence Scheme although unlike that scheme, the only sanction available to those breaking the code appears to be exclusion from the Fulfilment Group. What is the rate of Import VAT? The Government is aware that this provision is currently being exploited the relief now costs the Exchequer Import Duty: 9%. This notice is intended for anyone who owns or is responsible for a pleasure craft that sails to or from locations outside the UK. If you are looking at buying a car or other vehicle from one of the Channel Islands, then don't be put off because it will need to be declared to Customs, before you can register it with the DVLA. Travel. The total amount due is based on your consignment value and where your items are imported from. From the UK, anyone heading to a non-EU destination is able to buy alcohol and tobacco free of duty, and all other goods free of VAT. Avoid custom delays by pre paying your VAT online. Threshold: EUR 20. From the 1st January 2021, the 'Other Goods' allowances will also apply to passengers importing goods from any place other than the UK, Isle of Man and Jersey. In 2008 the Fulfilment Group together with the Guernsey authorities created a Code of Conduct which remains unavailable on the internet but can be obtained from the Guernsey Commerce and Employment Department of the States of Guernsey. In 2007 a Review of the Bulk mail export of DVDs and CDs under the LVCR arrangements was announced[26] by the Commerce & Employment Department along with the formation of the Guernsey Mail Order and Fulfilment Group which is made up of retailers and fulfilment operators based in the Bailiwick. However, the Channel Islands, whilst having no direct influence on the tax policies of the UK government, do regularly discuss taxation issues with the UK Treasury and HM Revenue and Customs as proven by the discussions that took place in 2006 regarding Jersey's new Fulfilment Industry Policy. In a written answer to Janet Dean MP on 18 June 2008 the then Financial Secretary to the Treasury Jane Kennedy stated that three quarters of the VAT avoided due to LVCR "is attributable to imports from the Crown dependencies". [5] A study by the Kantar Group found that in 2009 there was an 18% increase in the volume of online CD sales. Export of vehicles to the UK (2.7.4.L4) LOCAL INFORMATION . section 4. VAT is also due on any gift sent from Jersey to the UK that is valued over £39 (including the postage and packing). VAT: 20%. 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