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Jersey Post collecting VAT on goods posted from Jersey

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WQ.510/2019

WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY M.R. HIGGINS OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 12th NOVEMBER 2019

Question

Will the Minister, as shareholder representative, advise –

  1. why Jersey Post is collecting V.A.T. on goods posted from Jersey to the United Kingdom (U.K.); and
  2. what value of V.A.T. was collected as a result for each of the last 5 years and what the cost was of Jersey Post providing this service for the U.K. authorities?

Answer

The following response has been provided by Jersey Post.

Jersey Post offers an HMRC approved VAT prepayment scheme the intention of which is to minimise delays and extra costs to island residents and businesses sending items to the UK.

VAT is due on any commercial item sent from Jersey to the UK including anything sold by members of the public (for example, on eBay).

VAT is also due on any gift sent from Jersey to the UK that is valued over £39 (including the postage and packing).

Pre-paying VAT is the quickest and cheapest option to get items to the UK. Alternatively, residents and businesses in Jersey could send their items without pre-paying. This could lead to delays in Customs and the recipient would need to pay both the VAT and an £8 Royal Mail collection charge to claim the item.

The value of VAT collected over the past 5 years is as follows: - 2019 year to date  £1.8m

2018  £1.3m

2017  £1.5m

2016  £2.3m

2015  £5.8m

The service is being provided by Jersey Post to the businesses and residents of Jersey and not to the UK authorities (i.e. HMRC). However, in recognition of the time and effort saved by HMRC in collecting VAT on goods exported from Jersey to the UK, they recompense Jersey Post for operating the Scheme.