Jersey: Guide To Goods And Services Tax And International Service Entities In Jersey


This guide provides an outline description of Goods and Services Tax and International Services Entities in Jersey.

It is recognised that this guide will not completely answer detailed questions from clients and their advisers. This guide is intended to provide a sketch of the subject matter covered and, is therefore, designed as a starting point for a more detailed and comprehensive discussion of the issues.

1. Goods and Services Tax ("GST")

GST was introduced in Jersey in 2008 pursuant to the Goods and Services Tax (Jersey) Law 2007, as amended (the "Law"). It is a tax payable by consumers, not businesses, which is charged on the majority of goods and services supplied in Jersey for use or benefit locally. It is collected at each stage of production, manufacture, distribution and sale, where the supplier is, or is required to be, registered for GST.

GST is also charged and payable on the importation of goods as if it were a customs duty on the goods under the Customs and Excise (Jersey) Law 1999.

The current rate of GST payable is 5% of the value of the goods or services supplied.

It should be noted, however, that there are certain supplies (eg. exported goods, housing, medical prescriptions and international services) which, for economic reasons are taxed at 0% and exempt supplies which are not taxed for social or difficult to tax reasons (eg. finance, insurance, postal, medical and paramedical supplies made by registered professionals or institutions, as well as supplies by charities).

Input and Output Tax

Registered businesses are required to make quarterly payments of tax collected to the Comptroller of Income Tax in Jersey (the "Comptroller"). Tax received on the goods sold is called output tax and tax paid is called input tax. A registered business will be able to offset output tax against any input tax and it is the balance of this deduction which is paid to the Comptroller.

Below is an example of how payment of tax is calculated:

A wholesaler sells goods to a Jersey retailer for £300 plus 5% GST.

The Jersey retailer pays £315 for these goods (£15 input tax).

The Jersey retailer sells the goods to a consumer for £525 (£300 original cost, £200 mark-up, £25 output tax).

The Jersey retailer pays £10 to the Comptroller (calculated by deducting £15 input tax from £25 output tax = £10). The wholesaler pays £15 to the Comptroller (subject to any input tax that may be set-off). The total GST paid to the Comptroller is £25, which is the GST paid by the consumer on the total price of the goods. The businesses of the wholesaler and the retailer do not suffer any additional financial loss.

GST Registration

A business must be registered for GST if it has, in the preceding 12 months made taxable supplies (i.e. supplies at standard or zero rate) of £300,000 or more. Registration can be undertaken online at

If a business is not registered for GST, it must not charge GST to its customers and it will not be able to reclaim any GST incurred.

If the 'taxable supplies' of a business are below the registration threshold of £300,000 but it is able to satisfy the Comptroller of Income Tax in Jersey ("Comptroller") that the business makes 'taxable supplies' or intends to do so, it can apply for voluntary registration under Article 5 of Schedule 1 of the Law.

2. International Service Entities ("ISEs")

To protect the competitiveness of the finance industry in Jersey, GST is not charged on services provided to ISEs. ISEs are entities listed as international service entities by the Comptroller or by a trust company business, which the Comptroller has authorised to maintain a list of ISEs.

The ISE scheme is an alternative to GST registration. ISEs are not required to register for GST nor charge GST as its supplies are not taxable.

ISE Lists

The following businesses can be included on the list of ISEs maintained by the Comptroller only:

  • Banks registered under the Banking Business (Jersey) Law 1991 to undertake deposit-taking business;
  • Trust company businesses registered as such under the Financial Services (Jersey) Law 1998 ("FSJL");
  • Fund services businesses registered as such under FSJL;
  • Functionaries of collective investment funds holding permits pursuant to the Collective Investment Funds (Jersey) Law 1988 ("CIF").

The following businesses can be included on either the lists kept by the Comptroller or maintained by an authorised trust company business:

  • Collective investment funds established pursuant to CIF;
  • Unregulated funds established pursuant to the Collective Investment Funds (Unregulated Funds) (Jersey) Order 2008;
  • Companies;
  • Limited partnerships, limited liability partnerships;
  • Trustees of trusts; and
  • An Anstalt, Stiftung, or foundation.

In the case of companies, limited partnerships, limited liability partnerships, trustees, Anstalt, Stiftung and foundations, all of the following conditions must be met in order for such entity to be eligible for listing as an ISE:

  1. not more than 10% in value of all the supplies made by the entity of goods and services are made to individuals who belong in Jersey;
  2. to the extent the value of all the supplies of goods or services made by the entity in Jersey exceeds 10% of the value of all supplies of goods and services made by the entity, the supplies in Jersey are made only to an ISE;
  3. no individual who belongs in Jersey has the effective use, or the effective enjoyment, of any asset owned or administered by the entity; and
  4. no individual who belongs in Jersey has the effective use, or the effective enjoyment, of any goods, or service, supplied to or by the entity.


The following fees are payable, in aggregate, for each calendar year regardless of the date of application (no apportionment for period of less than one year):

  • Banks (deposit-taking business) - £30,000;
  • Trust company business - £7,500 for affiliation leader plus £200 for each participating member and £200 for each ISE administered (and listed by it);
  • Fund services business (not registered as a managed manager) - £2,500;
  • Entity holding a CIF permit as a functionary (but not a managed manager nor collective investment fund) - £2,500; Entity holding a CIF permit as a managed manager - £500;
  • A collective investment fund (if listed by the Comptroller)- £200;
  • An entity which is a body corporate or partnership, limited partnership or limited liability partnership, which is not included in any of the other entities in this list - £200
  • An entity that is a trustee, which is not included in any of the other entities – nil
  • A collective investment fund (which is not included in any of the other entities in this list) - £200
  • An Anstalt, Stiftung or foundation – £200

ISE Registration

Application for registration to the Comptroller is completed online at

ISE status lasts for one calendar year and entities are required to renew their ISE registration annually in order to retain such status. It is not possible to renew ISE status if there are registration or renewal fees outstanding from a previous year.

If an entity ceases to be listed, it will cease to be an ISE.

End User Relief

Once listed, an ISE is issued with an End User Relief Certificate ("Certificate") by the Comptroller which exempts it from being charged GST by its suppliers and it will be given an identification number. If the ISE is on a list maintained by a trust company business then that business will issue the ISE with a statement confirming its listing ("Statement").

The effect of the Certificate or the Statement is that GST registered persons should not charge GST on supplies made to an ISE unless:

  • the supply is made under a retail scheme and has a value of less than £1,000; or
  • goods are being supplied to the ISE for onward supply in the same state to a person who belongs in Jersey.

Input tax is recoverable when attributable to supplies made to an ISE by submitting a claim form to the Income Tax office in Jersey.

3. Offences

Failure to comply with the provisions of the Law may result in tax penalties being imposed or sanctions for criminal offences, eg. a fine or term of imprisonment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions