VAT Payable on delivery from Jersey Island, UK

daltonj7

Hi,
I recently bought my girlfriend something online for circa €55. It was a from a company in the UK and it was delivered today with a VAT charge of €18.49 (including a €6 An Post fee) as it is from outside the EU.

Is there a way to appeal this? I feel that it is ludicrous that although it was posted from Jersey that it has a VAT charge attached to it. Below is a link to Jersey's govt website effectively. In the second heading it states "Jersey has a special relationship with the European Union (EU). In simple terms, the Island is treated as part of the European Community for the purposes of free trade in goods, but otherwise is not a part of the EU".

https://www.gov.je/GOVERNMENT/JERSEYWORLD/INTERNATIONALAFFAIRS/Pages/RelationshipEUandUK.aspx

Have I been charged incorrectly?

Thanks

srsly78

Why wouldn't you pay vat on it?

daltonj7

Because there has already been vat paid on it in the UK

Marcusm

Jersey is not part of the UK, UK VAT will not have been charged on it and Jersey does not have a VAT system.

All of these add up to why Jersey is such a large "location" for internet selling of CDs, DVDs, printer cartridges etc. Even major retailers such as Tesco established Jersey subsidiaries so that they could compete with play.com and similar. There is a exemption for goods of low value (which CDs/DVDs etc generally fell under) called Low Value Consignment Relief but the amount was way below €55 (about €20).

If you look back at the website (which may have the same name as a major UK retailer), you'll find in the small print that they told you that they were selling "from" Jersey and that no VAT was applied at source. The problem is that you have accepted the goods and as such you have "imported" them and are stuck with the duty implications. Distance selling regulations generally provide a 14 day rejection period but the cost of recovering the duty would like exceed what it cost.

If you wonder why I put location and from in inverted commas, it's because your goods were likely dispatched from a UK warehouse but that is not where the sale was made and not the thing which determines whether VAT is payable.

On this occasion, it looks like you have to suck it up. IN future, if they demand customs charges then do the research before paying (easier said than done).

Pro Hoc Vice

daltonj7 wrote: »

Hi,
I recently bought my girlfriend something online for circa €55. It was a from a company in the UK and it was delivered today with a VAT charge of €18.49 (including a €6 An Post fee) as it is from outside the EU.

Is there a way to appeal this? I feel that it is ludicrous that although it was posted from Jersey that it has a VAT charge attached to it. Below is a link to Jersey's govt website effectively. In the second heading it states "Jersey has a special relationship with the European Union (EU). In simple terms, the Island is treated as part of the European Community for the purposes of free trade in goods, but otherwise is not a part of the EU".

https://www.gov.je/GOVERNMENT/JERSEYWORLD/INTERNATIONALAFFAIRS/Pages/RelationshipEUandUK.aspx

Have I been charged incorrectly?

Thanks

http://www.brighton-accountants.com/blog/vat-jersey/

"Well, the Channel Islands (Jersey, Guernsey, Alderney, Sark and Herm) are NOT part of the UK or the European Union for VAT purposes."

So for tax and VAT purposes its outside the EU, it's even outside the UK for such issues.

daltonj7

Marcusm wrote: »

Jersey is not part of the UK, UK VAT will not have been charged on it and Jersey does not have a VAT system.

All of these add up to why Jersey is such a large "location" for internet selling of CDs, DVDs, printer cartridges etc. Even major retailers such as Tesco established Jersey subsidiaries so that they could compete with play.com and similar. There is a exemption for goods of low value (which CDs/DVDs etc generally fell under) called Low Value Consignment Relief but the amount was way below €55 (about €20).

If you look back at the website (which may have the same name as a major UK retailer), you'll find in the small print that they told you that they were selling "from" Jersey and that no VAT was applied at source. The problem is that you have accepted the goods and as such you have "imported" them and are stuck with the duty implications. Distance selling regulations generally provide a 14 day rejection period but the cost of recovering the duty would like exceed what it cost.

If you wonder why I put location and from in inverted commas, it's because your goods were likely dispatched from a UK warehouse but that is not where the sale was made and not the thing which determines whether VAT is payable.

On this occasion, it looks like you have to suck it up. IN future, if they demand customs charges then do the research before paying (easier said than done).

Cheers marcusm