Is this correct? Worldwide VAT, GST and Sales Tax Guide 19 May 2020 (pdf) Download 4 MB. Our company is currently exporting products to Jersey. The EU Reverse Charge VAT mechanism was implemented in 1993 to make the selling and buying of goods and services between the EU member states easier by simplifying the VAT reporting system. The status of these islands for VAT purposes often causes confusion for UK businesses selling goods or services there: are they part of the UK, or aren’t they? What your customer does with the goods once they are on UK soil is no longer your concern. Discussion in 'Accounts & Finance' started by simonswords, May 9, 2007. The European Union value-added tax (or EU VAT) is a value added tax on goods and services within the European Union (EU). Goods in free circulation coming from these territories are subject to the import VAT of the EU country they arrive in. These leaflets/pamplets are basically promoting tourism in Tasmania, Australia. Mountains were formed as a result, and they are found in Ireland and Britain, especially in the north. However, a sub-contractor who is based in the UK and employed by us on this job is charging us VAT on their invoice to us - is this correct or should their invoice to us for work carried out in Jersey, not have a VAT element. If you supply services to a business customer in the EU, you don’t need to charge VAT - the customer is responsible for paying VAT in their country. Goods leaving to these these territories are subject to the export formalities and for VAT purposes are considered as transported outside the EU territory. Normally we would enter this sale in our accounts with VAT added, do we just remove the VAT and record it as otherwise a normal transaction, or does it need to be entered somewhere in the VAT 100 report? google_ad_height = 250; You are currently viewing this website in smartphone mode. The islands took their distinct shape after years of being exposed to glaciations and Great Britain, and Ireland became the largest by size. To be able to handle EU VAT and to know whether to book sales or purchases as EU sales or EU purchases, one must know which countries are part of the EU. Starting self-employment while still employed. Are you providing a printing service, a postage service, or a marketing service? During this time we have local status and are liable for GY tax. The tables below provide a list of the EU countries and certain territories where the EU rules regulating customs, VAT and excise apply or not apply. VAT must then be paid if the boat is brought back into the EU. This includes estate agency, conveyancing, architects, surveying, construction, property maintenance, hotel accommodation, defined exhibition stands, and property management services. UK VAT does not need to be charged on most ‘intellectual’ or ‘intangible’ services supplied to a customer who belongs in Jersey. Campione is excluded from the EU VAT area. International transactions until 31 December 2020. It is causing us headaches ;-). Jersey and the UK are currently in a customs union with the EU and apply the EU’s common external tariff, but that will change on leaving the EU Customs Union on 29 March 2019. Land and property. 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. As a starting point, you need to look at the exact nature of what is being supplied, and whether you are making a single or a multiple supply. More information is needed here. As this is in the UK, UK VAT is payable. Jersey Island is certainly not th… we paid shipping company the vat) in order to compy with customs. Do we need to charge vat on our services? exempt items, zero-rated items, items subject to a reduced rate, alternative schemes). “Thank you for contacting Skype Support.We understand your concern regarding VAT. If I buy something mail order from Jersey, where no VAT is charged, will I have to pay VAT when it is delivered to me? The rate can vary from 17-27% depending on the country of sale. We are invoicing head office in the uk for the trucks. Since May 2008, Jersey has operated a Goods and Services Tax (GST) on some supplies, initially at 3% and then since June 2011 at 5%. If your subcontractor is charging you for a service related to land or property in Jersey, their service is outside the scope of UK VAT. UK VAT does not need to be charged on passenger transport carried out in Jersey. We are sometimes asked by Channel Island (potential) customers if we can deduct the VAT if they buy from us. Imports of goods from Jersey and Guernsey Existing arrangements for imports from Jersey and Guernsey will continue after the end of the transition period. I see from the above this sale will be free of vat but is this irrespective of the vat status of the buyer-ie does he need to be registered for it to be free of vat? Do the Channel Islands allow electronic invoicing? As the property is in England, all services relating to the property are subject to UK VAT. The biggest markets within the EU are UK, France and Germany, which account for 60% of the online retail market with a population of over 210 million people between them. google_ad_slot = "5365964180"; Thanks in advance. (Articles 274-277 VAT Directive) Which VAT applies to goods leaving to EU territories not covered by EU VAT rules? In 1928, the Jersey government introduced an income tax of 2.5%. Where you are arranging the transport out the UK, this is usually straightforward, however you must keep some proof of export. We do not provide any VAT related services. If you are asked for a VAT number, you should advise your supplier that Jersey is outside the European Union (EU). This is because EU countries are obliged to treat goods from these territories the same as goods coming from outside the EU. Concerning population, the two islands had the highest number of people living in them. Obviously we supply services not goods, but should we be charging VAT on the annual invoice to the new Jersey member? You can only charge VAT at 0% if the goods are being removed from the UK. It should not appear in box 8. My client have stated (since 44) that VAT does not have to be included on invoice. Is it correct that a Jersey ltd company can reclaim VAT it paid to UK companies only when it also charges VAT to its UK customers (for services)? I think you need paid professional advice. We run a business in Jersey and we ordered goods from the USA. Value Added Tax (VAT) is a consumption tax that is applied to nearly all goods and services that are bought and sold for use or consumption in the EU (In this case, the 27 EU member states + the UK (until the end of the transition period).).. We have recently been awarded a construction job in jersey for next year and the company we will be working for and invoicing will be uk based but the work will be in jersey. 0 % ? As stated above, goods exported to the Islands can be zero-rated for UK VAT purposes, as long as documentary evidence of the export is kept. While we would not claim to be experts on Luxembourg VAT, the general position is that Jersey is not in the EU VAT area, and a telephone service effectively used and enjoyed outside the EU should not have VAT added by a country within the EU. VAT, or value added tax, is a form of sales tax used across the European Union. Do we pay VAT & import duties in UK ? My wife and I have moved to Guernsey for a five year period. Even where VAT is not being charged, the net value of the sale must still be reported on the UK VAT return, in box 6. simonswords UKBF Ace Full Member. This is because EU countries are obliged to treat goods from these territories the same as goods coming from outside the EU. Shipping to Jersey is outside of the EU VAT zone, so does not attract VAT. Which VAT rules apply in the territories not covered by EU rules? Whether you are selling via your own online store or using the marketplaces such as eBay or Amazon, the European ecommerce market is a very attractive option for USA sellers. Goods exported to Jersey would not normally have VAT charged, so I am not sure what you mean by deducting VAT for your customers. Jersey VAT Calculator. how does the uk based business claim back the vat? Jersey isn't an EC member state and the supply of a website is an electronically provided service. Could you please advise on what we actually have to pay vat on? I am a Jersey resident and have applied to go on the Qualified Lawyer Transfer Test Course which will take place in London over two weekends. This Act, and subsequent amendments, set the rule for UK VAT registrations, compliance, returns, Intrastat, EC Sales lists and other related issues. Goods in free circulation coming from these territories are subject to the import VAT of the EU country they arrive in. The EU's institutions do not collect the tax, but EU member states are each required to adopt a value added tax that complies with the EU VAT code. This is a complex area, but broadly, assuming the supplier belongs in the UK and the customer belongs in Jersey, UK VAT will need to be charged on most services unless one of the following exceptions applies: There are special rules for hired goods (section 13 of VAT Notice 741) and telecommunications (section 14 of VAT Notice 741). VAT accounting schemes. Until we receive this clarification, we must charge you 15% VAT. In addition, one must check which areas of the EU are part of the EU VAT area, the EU Customs Union orboth. As the Islands do not have their own VAT, a UK business should not be charged Channel Islands VAT on any goods, but may be charged the standard rate of UK VAT on importing goods into the UK. Goods are being delivered to the UK (Fareham). We cannot comment on the Portuguese system of VAT, but if it is similar to the UK (most EU countries have similar rules), it would be as follows: Work carried out on land in Jersey is outside the scope of UK VAT, so it does not need to be charged. I did not tick the box for VAT on the appliction form as I said that since I lived in Jersey, I would not have to pay the VAT on the course. If I have said documents and therefore do not charge VAT do I have to fill in box 8 on VAT form and also complete an Intrastat form? When selling items such as clothing, accessories etc to the Channel Islands, alot of the customers ask us to deduct the VAT for them. VAT does not apply in Jersey as the Island is not part of the European Union tax area Are you an agent of the Guernsey company? Brexit. As the VAT is not collected directly, luxury goods and services is much cheaper in Jersey when compared to France or UK, thus it gain more incentives for tourism from the neighboring countries. Do we charge VAT to the Guernsey company. Could you please let me know what the correct position is? The goods must not be used in the UK between sale and export. Coronavirus (COVID-19) … It applies to both B2B and B2C transactions, although businesses should ultimately be able to reclaim all of the VAT they pay. VAT has been paid to our importer for the goods which we can reclaim from HMRC. Shops and restaurants accept payments in both euros and Swiss francs, and prices are displayed in both euros and Swiss francs. You need to look at the real nature of the service that you are supplying. We are aware that the VAT rate is lower in certain areas (Canary Islands, Madeira, UK Channel Islands & Isle of Man). The EU VAT tax only applies to digital goods—something to consider. Do you know how to handle this VAT issue? Concerning 44 and your response 45, I am providing professional advice (as a procurement consultant)and also expediting services, monitoring progress at a manufacturer in Germany. The Jersey registered company propose to give me the title ‘Purchasing & Expediting Officer’. I said that because that I lived in Jersey in the Channel Islands, that I was not subject to VAT and asked them to stop invoicing me for this £3. If we remove the VAT that we would usually charge because a customer is in the Channel Islands, how would this be entered in accounts? I am a freelance purchasing consultant, and have just started to do business with a Jersey registered company, who are a Contractor on an African pipeline construction project. Does a sole trader need a separate business bank account? I am a resident in the channel islands, I regularly shop online without being charged vat but have recently come across a few companies who refuse to remove the vat for me. This can be reclaimed on the regular UK VAT return, subject to the normal rules about reclaiming input VAT. This includes cultural, artistic, sporting, scientific, educational, training, entertainment, exhibition and valuation services. Very broadly that is correct, but you may be able to reclaim some UK VAT under the EC 13th VAT Directive which is described in section 6 et seq of VAT Notice 723. We have a property in England that we rent out through an agent. You record it as a normal transaction only with no VAT, so that it is included in the box 6 total. We have requested clarification from Luxembourg authorities, where we are based, as to how to treat low tax locations within the EU. we have issued an invoice to the customer which includes vat (and our freight company has issued us a vat payment notification - i.e. Do you know if I should be paying this VAT or not? The VAT is a consumption tax assessed on the value added to goods and services. VAT Rates in European Union Member States, as of January 2020; Note: When one of the major EU VAT directives was adopted in 1991, some EU countries were applying reduced, super-reduced or zero rates to goods and services that were not specified by the new regulations as falling within the zero-rate or reduced rate categories. I have my own VAT registered business. Hi, We are a Guernsey Company that make Radio commercials EU VAT (Value-Added Tax) VAT is known as Value-Added Tax, and is applied to each sale in the EU. UK VAT does not need to be charged on most services relating to land or property situated in Jersey. resembling Australian animals) to its UK based agents or at Travel shows, - can this be treated as Non VATable too? If so at what rate ? It is based on the EU’s VAT laws, known as EU VAT Directives, which are implemented into UK legislation as the Value Added Tax Act. If a client from Jersey books for a sporting event in the UK do they have to pay the vat rate? If so, what are the requirements? Do i charge VAT or not? That I may live overseas but as I am studying in the UK by attending the two weekend courses, VAT is payable. GST taxation was introduced on 6 May 2008, at a rate of 3%. google_ad_height = 100; We are delivering goods from Holland to a customer (buyer) on the Channel Islands. The VAT status of the buyer is irrelevant. Can we reclaim the VAT that we will be charged? Jersey GST news. 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