Jersey shoppers to be taxed on overseas purchases

GST will be charged by large overseas retailers on all items ordered online

Shoppers will be charged tax on purchases coming into Jersey from "large overseas retailers" from 1 July, the government has confirmed.

Islanders already pay 5% tax on items bought from domestic retailers but will now have to pay Goods and Service Tax (GST) on all overseas orders.

The Government of Jersey said GST would be added at the checkout when islanders buy goods online, "whatever the value".

Currently shoppers do not pay tax on anything below £135 but this will now be reduced to £60.

The treasury and resources minister said it was an "issue of fairness" to charge online and on-island retailers the same.

ASOS, for example, has confirmed it had "registered for GST and will be collecting it as required by law".

Carl Walker, chairman of the consumer council, questioned how much the government had done to stop GST being charged on goods under £60 bought from large retailers like Amazon and eBay.

He asked: "Could the government have gone back and said 'actually, we really need you to charge tax on anything over £60 but not below. How far did those negotiations go?"

Deputy Ian Gorst said online retailers should follow the same rules as the retailers on-island

'Issue of fairness'

Deputy Ian Gorst, the treasury and resources minister, said the government had worked "collaboratively with offshore retailers and logistics providers" over the last two years to "ensure the smoothest possible transition".

He said charging GST on offshore retailers was an issue of fairness - and online retailers should follow the same rules as the retailers on the island's high street.

‘The government has already taken significant actions to help islanders with the cost of living and will keep those under review, but this is fundamentally an issue of fairness," he said.

"It cannot be right, for example, that a £25 item bought in our high street is taxed, while the same item from a large offshore retailer is supplied tax-free."