UK VAT and posting from Jersey
Jersey Post relies on a network of partners to ensure that items posted in Jersey reach their intended recipient, wherever they may be in the world. As well as other postal networks, customs authorities play a key part in the sending and receiving of items from Jersey to ensure compliance with duty and export regulations.
Working with Her Majesty’s Revenue and Customs in the UK, this information has been put together by Jersey Post to provide some basic guidance on VAT and how it impacts on individuals or businesses posting items from Jersey to the UK.
UK VAT is a tax similar to Jersey’s GST and is raised on goods purchased by consumers based in the United Kingdom. It is therefore due on most exports sent from the Island to UK-based recipients.
From 1 April 2012, the low value consignment relief (often referred to as LVCR) that was applied to goods sent from the Channel Islands to the UK was withdrawn. This relief previously allowed UK customers to import goods that had a value less than £15 from Jersey into the UK free of VAT.
As a consequence of the removal of LVCR, Her Majesty’s Revenue and Customs now have to calculate and charge VAT on far more goods exported from the Channel Islands and, as a result, customers can sometimes experience delays in receiving their items. A concession has been in existence for non-commercial packets and parcels, and, since 1 April 2012, Jersey Post has been offering a prepaid VAT scheme to help customers avoid potential delays. Customers need to be aware that any packet or parcel being sent that contains goods over the value of £39 is subject to VAT (with exception of those items that are VAT exempt).
Whilst limited VAT exemptions do exist, if the item being sent by you is not covered by any of these and the VAT has not been prepaid, there may be delays as it passes through Customs. In addition, the recipient of the item will be asked to pay the applicable VAT at 20% as well as an £8 Royal Mail collection charge at the point of delivery.
To help explain this subject, some of the most common questions that our personal and business customers are asking can be found by clicking here.
VAT is a complex tax and there is no substitute for professional advice. If you require additional information on this subject, or have a specific enquiry, you can also visit the website of UK Customs at www.hmrc.gov.uk and enter in the search field: ‘A guide for international post users’. This guide should provide you with further information to help you with your postage.