The introduction of a new sales
tax in
Jersey could result in UK consumers paying more for goods bought in the country.
Accountancy magazine says a new goods and services tax (GST) will be charged on most sales in
Jersey, starting at three per cent.
Businesses are only required to register for GST when its turnover exceeds £300,000; however firms can register voluntarily before then.
Hannah Dobson, VAT director at firm Smith and Williamson, told the magazine: "A three per cent starting rate may seem nominal but it's going to push up suppliers' costs and such increases typically hit the consumer's pocket."
Goods exported from
Jersey will remain VAT and GST free, but suppliers will need to prove it is exporting its goods to not be liable for the new tax.
The GST rate was announced in 2005 as part of the election and always planned to be introduced in 2008. The three percent rise is guaranteed to be held for at least three years and is expected to raise up to £45 million a year in extra tax, reports the BBC.
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