The value at which items bought online are subject to GST – known as the de minimis level – is to be reduced from £240 to £135, if proposals contained in the Government Plan are agreed. The change would mean any online orders above that amount would attract a GST charge of 5%.
But Daphne East, the former town centre manager who is now director of customer and care Services for St Helier, said the level should be zero.
She said that having a de minimis threshold created an ‘unfair playing field’ for high-street retailers and recently accused the government of not being ‘brave enough’. Following those comments a government spokeswoman said the proposed drop in the de minimis level was designed to mirror the situation in the
UK.
‘As part of our customs arrangements with the UK after Brexit, Jersey’s de minimis threshold for customs duty will be reduced to £135 so that it corresponds with the UK threshold.
‘Against this backdrop, the [Treasury] minister believes that it is reasonable and sensible to make sure that the GST and customs duty thresholds remain aligned. Separate thresholds for customs duty and GST would be confusing and difficult for Islanders to comply with.
‘Jersey will ultimately be required to abolish its GST threshold as the global standard moves in this direction. When this happens, Jersey will be a fast follower. The proposed phased reduction to £135 is an important first step in this process.’
