CDs, VAT and HMRC

STEPHEN CAMM and JONATHAN PRESHAW discuss the tax system that enables UK customers to benefit from tax relief on goods imported from Jersey.

A NUMBER OF retailers now provide low-value goods to UK customers from Jersey rather than directly from the UK. The value of such imports has grown considerably in recent years. Why is this? The reason is because of the tax advantage derived from the fact that Jersey does not yet have VAT. It is not part of the EU and as such there is no obligation on Jersey to introduce the tax. Thus a UK customer of a retailer based outside the UK can take advantage of a specific relief on the postal importation of goods valued at less than £18. A Jersey retailer of low value items can sell goods into the UK without having to account for VAT thereby...