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Isle of Jersey.

Is everything really Tax Free out there?

I.E. I noticed Tesco Jersey was cheaper than normal Tesco Extra and read into it a bit more.

Is it really that simple?!

Obviously shipping something out of the UK means it's tax free - i.e. if I shipped a mobile phone from the supplier direct to Jersey, VAT off?!

Comments

  • Aark
    Aark Posts: 247 Forumite
    VAT is not payable on imports if the goods cost less than £18.
  • isasmurf
    isasmurf Posts: 1,998 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Is everything really Tax Free out there?

    I.E. I noticed Tesco Jersey was cheaper than normal Tesco Extra and read into it a bit more.

    Is it really that simple?!

    Obviously shipping something out of the UK means it's tax free - i.e. if I shipped a mobile phone from the supplier direct to Jersey, VAT off?!
    But perhaps not for much longer. The States of Jersey are reforming their taxation system. One of the reforms includes the introduction of a Goods and Services Tax.

    http://www.gov.je/taxandspending/

    There was also some concerns a few months ago at the amount of VAT the UK Government was losing through this loophole.
  • gizmoleeds
    gizmoleeds Posts: 2,232 Forumite
    1,000 Posts Combo Breaker
    isasmurf wrote:
    But perhaps not for much longer. The States of Jersey are reforming their taxation system. One of the reforms includes the introduction of a Goods and Services Tax.
    There are other places in the world without VAT/Sales Tax where companies could set up a mail order business to the UK.

    (Unforutnately pehaps not as near to the UK which may mean higher postage). A quick google shows Gibraltar has no VAT.
  • gizmoleeds
    gizmoleeds Posts: 2,232 Forumite
    1,000 Posts Combo Breaker
    isasmurf wrote:
    There was also some concerns a few months ago at the amount of VAT the UK Government was losing through this loophole.
    Unless HMCR inspect every package coming into the country to apply 17½% VAT to it then there is nothing they can do.

    The £18 limit is there because it would be uneconomical to have people stopping packages for a couple of pounds of VAT.

    They may get tougher on the over-£18 packages though (as only about 1 in 20 of these seem to actually get stopped at the moment).
  • Bear in mind that you will also be charged by the post office for the honour of "presenting" the package to HMRC for assessment (non-refundable) - robbing bleeders!!

    GoG
    K eep
    I t
    S imple
    S tupid!!
  • There's no VAT in Jersey - but if your order exceeds about €20 you may find the post office collecting VAT and import duty when they deliver....
  • pin
    pin Posts: 4,265 Forumite
    Part of the Furniture Combo Breaker
    No VAT over here. Sending goods from Jersey, as everyone has said are VAT free. Duty and VAT may be applied by the customs (or whatever it is called now), goods under £18 are generally exempt from this. However lots of press on this at the moment and the amount may be reduced to £10.

    Also as others have said VAT is going to be introduced to Jersey.

    Although there is not VAT over here, doesn't mean everything is 17.5% cheaper here!! However I can buy things from abroad and get them sent VAT free to Jersey, which is great!!!
    "An eye for an eye leaves the whole world blind" - Mahatma Gandhi
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