Goods and Services
Tax (Jersey) Regulations 2007
THE STATES, in pursuance of Articles 16, 17, 20,
21, 29, 36, 37, 41, 42, 43, 52, 53, 56, 57, 61, 62, 97,
100 and 101, and Schedule 9, of
the Goods and
Services Tax (Jersey) Law 2007, have made the following Regulations –
Commencement [see endnotes]
part 1
preliminary
1 Interpretation
In these Regulations, “the
Law” means the Goods and Services Tax (Jersey) Law 2007.
part
2
public sector
2 States
a taxable person: Article 20 of Law
The States shall for the purposes of this Law be a taxable person to
a full extent corresponding to the supplies to and importations by the States.
3 Treatment
of supplies to States: Article 20 of Law
Any supply to the States, but not a supply to the States by the
States, shall be treated as a supply to the States for the purposes of the Law.
4 [1]
5 Application
of Law to parishes: Article 20 of Law
(1) The
Law shall not apply to the supply of goods or services by a parish, being a
supply that is not in the course of or furtherance of a business.
(2) For
the purposes of this Law –
(a) a
parish is liable to be registered and the Comptroller shall register it;
(b) a
parish shall be registered as one person;
(c) a
parish however shall be a taxable person only to the extent specified in paragraph (3);
and
(d) a
parish shall keep the same accounts and records, and provide to the Comptroller
the same information, as a taxable person.
(3) A parish
shall for the purposes of this Law be a taxable person to a full extent
corresponding to the supplies to and importations by the parish.
(4) Any
supply to a parish, but not a supply to the parish by the same parish, shall be
treated as a supply to the parish for the purposes of the Law.
6 Treatment
of other persons as States: Articles 20 and 53 of Law
(1) The
following shall be treated as the States under these Regulations and for the
purposes of the Law –
(a) a
non-Ministerial States body within the meaning of the Public Finances (Jersey)
Law 2019;
(b) a
body within paragraph (a) of the definition of “independently
audited States body” in Article 1(1) of the Comptroller and Auditor
General (Jersey) Law 2014;
(c) the
States Assembly, including committees and scrutiny panels of the States
established by standing orders;
(d)
(e) a
body within paragraph (c) or (d) of the definition of “States
body” in Article 1 of the Public Finances (Jersey)
Law 2019.[2]
(2) [3]
(3) The
following shall be treated as the States under these Regulations and for the
purposes of the Law –
(a) the
Committee of Management established under the Public Employees (Retirement)
(Jersey) Law 1967 for the purposes of managing the scheme established under that Law
and the scheme established under the Public Employees (Pensions)
(Jersey) Law 2014;
(b) the
manager of the Teachers’ Superannuation Fund established under the Teachers’
Superannuation (Jersey) Law 1979;
(c) the
manager of the retirement scheme referred to in Article 42(2)(b) of the Postal Services (Jersey)
Law 2004;
(d) the
Overseas Aid Commission;
(e) the
Jersey Consumer Council.[4]
part 2A[5]
exceptions to rule on where services supplied
6A Part applies to
prescribe exceptions for purposes of Article 24(2) of Law[6]
This Part applies to prescribe, under Article 24(2) of the Law,
exceptions to that Article concerning where, for the purposes of the Law,
services are to be treated as supplied.
6B Work on goods or
valuation of goods[7]
If a supply of services takes place that consist of work physically
carried out on, or valuation of, goods, the services shall be treated as
supplied in the place in which the goods are situated when the work, or
valuation, is carried out.
6C Services relating
to land[8]
Services not falling within Regulation 6E(b) shall be treated
as supplied where land in connection with which the supply is made is situated,
if the services consist of –
(a) the
grant, assignment or surrender of –
(i) any
interest in or right over the land,
(ii) a
personal right to call for or be granted any interest in or right over the land,
or
(iii) a
licence to occupy land or any other contractual right exercisable over or in
relation to the land;
(b) any
works of construction, demolition, conversion, reconstruction, alteration,
enlargement, repair or maintenance of a building, or civil engineering work, on
the land; or
(c) services
such as are normally supplied by estate agents, auctioneers, architects,
surveyors, engineers or others involved in matters relating to the land.
6D Services relating to
exhibitions, events, meetings[9]
Services shall be treated as supplied where they are physically
carried out if the services are –
(a) cultural,
artistic, sporting, scientific, educational or entertainment services;
(b) services
relating to exhibitions, conferences or meetings;
(c) services –
(i) ancillary
to services referred to in paragraph (a) or (b), and
(ii) not
falling within Regulation 6E(b); or
(d) services
of organizing the supply of services referred to in paragraph (a) or (b).
6E Services that put
transport or accommodation at the disposal of the customer[10]
If services consist of –
(a) the
letting on hire of any means of transport; or
(b) the
provision of accommodation of any kind in a hotel, guest house, camp site,
self-catering accommodation, or similar facility,
the services shall be treated as supplied –
(i) outside
Jersey if the means of transport or accommodation is put at the disposal of the
customer at a place outside Jersey; or
(ii) in
Jersey if the means of transport or accommodation is put at the disposal of the
customer at a place in Jersey.
6F Services of intermediaries[11]
If services –
(a) consist
of the making of arrangements for the supply of services to which any of
Regulations 6B to 6E applies; and
(b) do
not fall within Regulation 6D(c) or (d),
the first-mentioned services shall be treated as supplied outside
Jersey if the second-mentioned services are treated as supplied outside Jersey.
6G Certain electronic,
consultancy and other services[12]
(1) If
services specified in any of paragraphs 1 to 13 of Schedule 3 to the Law,
and not falling within Regulation 6C or 6D, are supplied by a person
belonging in Jersey to a person who –
(a) in
relation to receiving the supply of the services, belongs in a country other
than Jersey; and
(b) receives
the supply of the services in the course or furtherance of any business carried
on by him or her,
the services shall be treated as supplied outside Jersey.
(2) For
the avoidance of doubt, nothing in Article 6(1)(c) or 30 of the Law is to
apply to the interpretation or application of this Regulation.
part 3
time of supply: particular cases
7 General
Where, under these
Regulations, a supply is treated as taking place each time at which a payment
(however expressed) is received or an invoice is issued, the supply is to be
treated as taking place only to the extent covered by the payment or invoice.
8 Goods
for private use, and the free supply of services: Article 29 of Law
(1) Where
there is a supply of services to which paragraph 8(5) of Schedule 2
of the Law refers, they shall be treated as being supplied on the last day of
the prescribed accounting period of the supplier in which the goods concerned are
used or made available.
(2) Where
services specified in Regulations made by the States under Article 21(4)
of the Law are supplied, they shall be treated as being supplied on the last
day of the prescribed accounting period of the supplier in which the services
are performed.
9 Supplier’s
goods in possession of buyer: Article 29 of Law
(1) This
Regulation applies to a supply of goods –
(a) under
an agreement by which the supplier retains the property in them until the goods
or part of them are appropriated under the agreement by the buyer; and
(b) in
circumstances where the whole or part of the consideration is determined at
that time.
(2) However,
this Regulation does not apply to a supply to which Article 26(2) of the
Law refers.
(3) Where
this Regulation applies to a supply of goods, the supply shall be treated as
taking place at the earliest of the following dates –
(a) the
date of appropriation of the goods by the buyer;
(b) the
date when a GST invoice in respect of the supply is issued by the supplier;
(c) the
date when a payment in respect of the supply is received by the supplier.
10 Retention
payments: Article 29 of Law
(1) This
Regulation applies where any contract for the supply of goods or services
provides for the retention of any part of the consideration by a person pending
full and satisfactory performance of the contract, or any part of it, by the
supplier.
(2) Where
this Regulation applies, the goods or services shall be treated as separately
and successively supplied at the earliest of the following times –
(a) the
times determined in accordance with the provisions of Articles 26(1) and
(2), 27, 28(4) and (5), and 29(3), of the Law, to the extent that those
provisions apply;
(b) the
time at which a payment in respect of any part of the consideration that has
been retained, pursuant to the terms of the contract, is received by the
supplier;
(c) the
time at which the supplier issues a GST invoice relating to any such part.
11 Continuing supplies: Article 29 of Law
(1) Where
goods or services are supplied for a period for a consideration the whole or
part of which is determined or payable periodically or from time to time, they
shall be treated as separately and successively supplied at the earlier of the
following times –
(a) each
time at which a payment in respect of the supplies is received by the supplier;
(b) each
time at which the supplier issues a GST invoice relating to the supplies.
(2) However,
in the circumstances referred to in paragraph (3) goods or services shall
be treated as separately and successively supplied at the earlier of the
following times –
(a) each
time at which a payment in respect of them becomes due;
(b) each
time at which a payment in respect of them is received by the supplier.
(3) The
circumstances to which this paragraph refers are where –
(a) separate
and successive supplies of goods or services referred to in paragraph (1),
or continuous supplies of goods or services referred to in that paragraph, are
made under an agreement that provides for successive payments; and
(b) at
or about the beginning of any period not exceeding one year the supplier issues
a GST invoice containing, in addition to the particulars required by Article 42(2)(a)
and (d) of the Law, the particulars referred to in paragraph (4).[13]
(4) The
particulars to which this paragraph refers are –
(a) the
dates on which payments under the agreement are to become due in the period;
(b) the
amount payable (excluding GST) on each such date; and
(c) the
rate of GST in force at the time of issue of the GST invoice and the amount of GST
chargeable in accordance with that rate on each of the payments.
(5) Where –
(a) an
invoice is issued in the circumstances referred to in paragraph (3); and
(b) on
or before any due date on the invoice there is a change in the GST chargeable
on supplies of the description to which the invoice relates,
the invoice shall cease to be treated as a GST invoice in respect of
any such supplies for which payments are due after the change.
(6) However,
paragraph (5) does not apply to a GST invoice in respect of any supplies
for which payments are received before the change.
(7) In paragraph (5),
“due date” means a date that is specified on the invoice as a date
on which a payment is due.
12 Royalties and
similar payments: Article 29 of Law
(1) This
Regulation applies where the whole amount of the consideration for a supply of
services is not ascertainable at the time when the services are performed and
subsequently the use of the benefit of those services by a person other than
the supplier gives rise to any payment of consideration for that supply that –
(a) is
in whole or in part determined or payable periodically or from time to time or
at the end of any period;
(b) is
additional to the amount (if any) already payable for the supply; and
(c) is
not a payment to which Regulation 11 applies.
(2) Where
this Regulation applies, a further supply shall be treated as taking place at
each time when –
(a) a
payment in respect of the use of the benefit of those services is received by
the supplier; or
(b) a GST
invoice is issued by the supplier,
whichever event occurs earlier.
13 Supplies for
works: Article 29 of Law
(1) Where
services, or services together with goods, are supplied in the course of work
to which paragraph (3) refers under a contract that provides for payment
for such supplies to be made periodically or from time to time, a supply shall
be treated as taking place at each time when the supplier issues a GST invoice.
(2) However,
where the consideration for the contract is wholly in money, and a payment is
received by the supplier before the supplier issues a GST invoice in respect of
the supply concerned, the supply shall be treated as taking place at the time
when the payment is received.
(3) The
work to which this paragraph refers is the construction, alteration,
conversion, enlargement, improvement, reconstruction, repair, maintenance, or
demolition, of –
(a) a
building; or
(b) any
civil engineering work.
part 4
input tax
14 Claims
for input tax: Article 36(4) of Law
GST charged on any supply or importation is to be excluded from
credit referred to in Article 34(1) of the Law if a claim for the GST is
not made within 3 years after the end of the accounting period in which
the relevant GST became chargeable, or within such longer period as the Comptroller
may consider necessary, in the exceptional circumstances of a particular case,
in order to avoid an injustice.[14]
15 Input tax:
supplies to future taxable person: Article 37 of Law
(1) On
a claim made in accordance with Regulation 16, the Comptroller may allow a
taxable person, whether the person is an individual or a body corporate, to
treat as input tax –
(a) GST
on the supply of goods –
(i) to
the person,
(ii) before
the person’s registration date, and
(iii) for
the purpose of a business that, at the time of the supply, was being carried
on, or was to be carried on, by the person;
(b) GST
on the supply of services –
(i) to
the person,
(ii) before
the person’s registration date, and
(iii) for
the purpose of a business that, at the time of the supply, was being carried
on, or was to be carried on, by the person; or
(c) GST
on the importation of goods –
(i) by
the person,
(ii) before
the person’s registration date, and
(iii) for
the purpose of a business that, at the time of the importation, was being
carried on, or was to be carried on, by the person.
(2) On
a claim made in accordance with Regulation 16, the Comptroller may allow a
taxable person that is a body corporate to treat as input tax –
(a) GST
on the supply of goods –
(i) to
another person, and
(ii) before
the incorporation of the body corporate;
(b) GST
on the supply of services –
(i) to
another person,
(ii) before
the incorporation of the body corporate, and
(iii) for
the body corporate’s benefit or in connection with its incorporation; or
(c) GST
on the importation of goods –
(i) by
another person, and
(ii) before
the incorporation of the body corporate.
(3) Paragraph (2)
shall apply only if the other person to whom the supply was made or by whom the
importation was made –
(a) became
a member, officer or employee of the body corporate and was reimbursed, or
received an undertaking to be reimbursed, by the body corporate for the whole
amount of the price paid for the goods or services;
(b) was
not himself or herself a taxable person at the time of the supply or
importation; and
(c) was
so supplied, or made the importation, for the purpose of a business to be
carried on by the body corporate and has not used the goods or services for any
purpose other than the purpose of such business.
(4) A
taxable person cannot, however, treat GST as input tax by virtue of this
Regulation if the GST is –
(a) GST on the supply of
goods that took place more than 3 years before the taxable person’s registration date;
(b) GST on the importation of goods that took
place more than 3 years before the taxable person’s registration date;
(c) GST on the supply of
services that took place more than 6 months before the taxable person’s registration date;
(d) GST
on the supply or importation of goods that are consumed –
(i) in
a case to which paragraph (1) or (2) applies, by the taxable person, or
(ii) in
a case to which paragraph (2) applies, by the other person who acquired
the goods or services,
before the registration date of the taxable person; or
(e) GST
on a supply of services performed on goods to which sub-paragraph (a) or (d)
applies.[15]
(5) Despite
paragraph (4)(d), GST referred to in that sub-paragraph may be treated as
input tax under this Regulation if the Comptroller considers it just to do so
and so directs.
(6) In
this Regulation, the “registration date” of a taxable person
means –
(a) in
the case where the person notified the Comptroller in accordance with
paragraph 3 of Schedule 1 of the Law and the Comptroller registered
the person in accordance with that Schedule, the date on which the
person’s actual registration took effect; or
(b) in
any other case, the date on which the person’s registration would have
taken effect, if the person had notified the Comptroller in accordance with
paragraph 3 of Schedule 1 of the Law and the Comptroller had
registered the person in accordance with that Schedule.
16 Claim for input
tax on supplies to future taxable person
(1) A
claim referred to in Regulation 15 shall, unless the Comptroller otherwise
allows, be made on the first GST return that the relevant taxable person makes under
Part 10 of the Law and, if the Comptroller so requires by direction, shall
be supported by invoices and other evidence specified in the direction.
(2) A
taxable person who makes such a claim shall compile and preserve for the period
that the Comptroller by direction requires –
(a) in
respect of goods, a stock account showing separately quantities purchased,
quantities used in the making of other goods, date of purchase and date and
manner of subsequent disposals of both the quantities; and
(b) in
respect of services, a list showing their description, date of purchase and
date of disposal, if any.
17 Repayment of
input tax if person ceases to be taxable person: Article 37 of Law
If a person who has been, but is no longer, a taxable person, makes
a claim in the manner, and supported by the evidence, that the Comptroller
requires by direction, the Comptroller may pay to the person the amount of any
GST –
(a) on
the supply of services to the person after the date with effect from which the
person ceased to be a taxable person; and
(b) that
is an amount attributable to any taxable supply made by the person in the
course or furtherance of any business carried on by the person when he or she
was a taxable person.
18 Substantiation of
amounts: Article 41(2) and (3) of Law
(1) For
the purposes of Article 41(2) of the Law, the charge to GST on the supply
of goods or services to a taxable person shall be substantiated by the taxable
person’s –
(a) retaining,
for 6 years after the date of supply, such of the documents specified in paragraph (2)
as relate to the period during which the supply was made and to the business of
the person in the course of which the supply was made, and
(b) producing
any of those documents to the Comptroller on demand.[16]
(2) The
documents are –
(a) a
GST account;
(b) a
copy of a sales invoice, whether issued or received by the person;
(c) a
record of supplies of goods or services made from the business for the personal
use of the person;
(d) a
record of supplies of goods or services made free of charge, or for less than
their open-market value, to the employees of the person or to other persons;
(e) a
record that lists and summarizes any cash receipts, or cash payments, by the
person;
(f) a
record of opening and closing stock;
(g) a
purchases ledger or sales ledger;
(h) an
income and expense account;
(i) a
cash register roll or tape;
(j) a
bank statement;
(k) a copy
of a customs import or export document;
(l) an
annual account;
(m) such
other document as the Comptroller may specify by general direction.
(3) For
the purposes of Article 41(2) of the Law, the charge to GST on the importation
of goods by a taxable person shall be substantiated by the taxable
person’s –
(a) retaining,
for 6 years after the date of importation, such of the documents specified
in paragraph (4) as relate to the period during which the importation was
made and to the business of the person in the course of which the importation
was made; and
(b) producing
any of those documents to the Comptroller on demand.[17]
(4) The
documents are –
(a) the
original or a copy of any relevant customs entry form;
(b) the
original or a copy of a receipt issued by the Agent of the Impôts for
payment of GST on the importation of the goods;
(c) a
GST account;
(d) a
copy of a sales invoice, whether issued or received by the person;
(e) a
record of supplies of goods or services made from the business for the personal
use of the person;
(f) a
record of supplies of goods or services made free of charge, or for less than
their open-market value, to the employees of the person or to other persons;
(g) a
record that lists and summarizes any cash receipts, or cash payments, by the
person;
(h) a
record of opening and closing stock;
(i) a
purchases ledger or sales ledger;
(j) an
income and expense account;
(k) a
cash register roll or tape;
(l) a
bank statement;
(m) a copy of
a customs import or export document;
(n) an
annual account;
(o) such
other document as the Comptroller may specify by general direction.
(5) For
the purposes of Article 41(3) of the Law, the following documents relating
to GST may be required to be produced to the extent that they are relevant to
the input tax in question and relate to the business of the person referred to
in Article 41(3) of the Law –
(a) a
GST account;
(b) a
copy of a sales invoice, whether issued or received by the person;
(c) a
record of supplies of goods or services made from the business for the personal
use of the person;
(d) a
record of supplies of goods or services made free of charge, or for less than
their open-market value, to the employees of the person or to other persons;
(e) a
record that lists and summarizes any cash receipts, or cash payments, by the
person;
(f) a
record of opening and closing stock;
(g) a
purchases ledger or sales ledger;
(h) an
income and expense account;
(i) a
cash register roll or tape;
(j) a
bank statement;
(k) a
copy of a customs import or export document;
(l) a
computer record;
(m) correspondence;
(n) an
annual account;
(o) any
other record.
(6) A
document that is required under this Regulation to be retained may be retained
in electronic form or on paper and a document that is required under this
Regulation to be produced may be produced in electronic form or on paper.
19 Adjustments in
the course of business: Article 43(2)(c) and (d) of Law
(1) If –
(a) there
is a variation in the consideration due on a supply made by a taxable person
that is evidenced by a credit or debit note or any other document to the same
effect; and
(b) the
consideration includes an amount of GST,
the taxable person shall adjust his or her GST account accordingly.
(2) The
adjustment shall be made in that part of the GST account that relates to the
accounting period in which the variation is given effect in the business
accounts of the taxable person.
(3) Paragraphs (1)
and (2) shall not apply in respect of a variation in consideration
if –
(a) the
recipient of the supply is registered;
(b) the
taxable person and the recipient of the supply agree not to adjust their
respective GST accounts in respect of the supply; and
(c) the
taxable person and the recipient of the supply are not connected.[18]
part 5
gst invoices
20 Comptroller may
treat document as GST invoice: Article 42 of Law
(1) This
Regulation applies where –
(a) a
person other than a registered person provides a document that purports to show
that goods or services are supplied by a registered person; and
(b) the
Comptroller is satisfied that the document contains all the information that
would have been required to be provided by that registered person in a GST
invoice issued by that person in respect of the supply of those goods or
services.
(2) In
a case to which this Regulation applies, the Comptroller may accept the
document as a GST invoice issued by a registered person in compliance with Article 42
of the Law in respect of the supply of those goods or services.
(3) Where,
in accordance with paragraph (2), the Comptroller accepts a document as a
GST invoice issued in respect of the supply of goods or services by a
registered person, any document issued by the registered person that purports
to be a GST invoice shall not have effect as a GST invoice to the extent that
it applies to the same supply of goods or services.
21 Where business
assets are sold to recover debt: Article 42 of Law
(1) This
Regulation applies where, as referred to in paragraph 9 of Schedule 2
to the Law, the business assets of a business carried on by a taxable person
are sold under a power exercisable by another person (“the
creditor”) in or towards the satisfaction of a debt owed by the taxable
person to the creditor.
(2) The
Comptroller may accept, as a GST invoice issued by the taxable person in
compliance with Article 42 of the Law, a document that the Comptroller is
satisfied –
(a) correctly
shows the business assets sold by or on behalf of the creditor; and
(b) contains
all the information that would have been required to be provided by that
taxable person in a GST invoice issued by that person in respect of the supply
of those business assets.
(3) Where,
in accordance with paragraph (2), the Comptroller accepts a document as a
GST invoice issued in respect of the supply of business assets by a taxable
person, any document issued by the taxable person that purports to be a GST
invoice shall not have effect as a GST invoice to the extent that it applies to
the supply of the same business assets.
(4) Where,
by virtue of a declaration made in accordance with the Bankruptcy (Désastre)
(Jersey) Law 1990, the business assets of a taxable person are vested in the
Viscount, for the purpose of applying this Regulation, those
assets –
(a) shall
be taken to remain the property of the taxable person until sold by or on
behalf of the Viscount; and
(b) if
sold by or on behalf of the Viscount, shall be taken to have been sold by or on
behalf of a creditor.
part 6[19]
special treatment of second-hand goods
22 Interpretation[20]
In this Part –
“auction” means a public sale where persons become
purchasers by competition, being the highest bidders;
“auctioneer” means a person who sells or offers for sale
goods at an auction;
“motor vehicle” has the same meaning as in the Customs and Excise (Jersey)
Law 1999;
“second-hand goods” means goods that are suitable for
further use as they are or after repair.
23 Application of
Part[21]
(1) A
reference in Regulation 24(1) to (3) to goods is to any goods.
(2) A
reference in Regulation 24(4)(a) or (b), 25, 26 or 27 to goods is only to
goods that are motor vehicles.
24 Various
transactions treated in different ways: Article 21 of Law
(1) For
the purposes of the Law, the disposal of second-hand goods –
(a) by
a person who repossessed them under the terms of a finance agreement; or
(b) by
an insurer who took possession of them in settlement of a claim under a policy
of insurance,
shall be treated as neither a supply of goods nor a supply of
services if –
(i) in
each case, the goods so disposed of are in the same condition at the time of
disposal as they were when they were repossessed or taken into possession, as
the case may be; and
(ii) a
supply of them in Jersey by the person from whom in each case they were
obtained would not have been chargeable to GST, or would have been chargeable to
GST on less than the full value of the supply.
(2) Paragraph (1)
shall not apply to re-imported goods that were previously exported from Jersey
free of GST by reason of their being zero-rated, or to imported goods whose
importation was not chargeable to GST.
(3) The
exchange of reconditioned goods for unserviceable goods of a similar kind by a
person who regularly offers in the course of his or her business to provide a
reconditioning facility for goods of that kind shall be treated for the
purposes of the Law as a supply of services and not as a supply of goods.
(4) The
following supplies shall be treated for the purposes of the Law as neither a
supply of goods nor a supply of services –
(a) a
supply of services, in connection with a supply of goods and provided by an
agent acting in his or her own name, to the purchaser of the goods where the
consideration for the supply of the services is taken into account under Regulation 26(4)
in calculating the price at which the agent sold the goods;
(b) a
supply of services, in connection with a sale of goods and provided by an
auctioneer acting in his or her own name, to the vendor or the purchaser of the
goods, where the consideration for the supply of the services is taken into
account under Regulation 27 in calculating the price at which the
auctioneer obtained or (as the case may be) sold the goods.[22]
25 Margin scheme for
second-hand motor vehicles: Article 52 of Law
(1) Subject
to such conditions as the Comptroller may direct, if a taxable person supplies
second-hand goods of which he or she took possession in any of the circumstances
set out in paragraph (2), he or she may choose to account for the GST on
the supply by reference to the profit margin on the supply instead of by
reference to the value of the supply.
(2) The
circumstances are that the taxable person has taken possession of the goods
pursuant to –
(a) a
supply on which no GST was chargeable under the Law;
(b) a
supply on which GST was chargeable by reference to the profit margin in
accordance with paragraph (1);
(c) a
transaction treated for the purposes of the Law as being neither a supply of
goods nor a supply of services; or
(d) an
importation in respect of which the taxable person does not claim a GST credit.
(3) Paragraph (1)
shall not apply to a supply if –
(a) the
supply is a letting on hire; or
(b) an
invoice or similar document showing an amount as being GST or as being
attributable to GST is issued in respect of the supply.
(4) The
profit margin shall be determined for the purposes of paragraph (1) by
finding the difference between the price at which the goods are obtained and
the price at which the goods are sold.
26 Calculation of
terms for determining profit margin: generally
(1) For
the purposes of Regulation 25, the price at which the goods are obtained
pursuant to a supply is a price calculated –
(a) if
the taxable person is a sole proprietor and the goods are supplied to him or
her in his or her private capacity, in the same way as the consideration for
the supply to him or her as a private individual would be calculated for the
purposes of the Law; or
(b) in
any other case, in the same way as the consideration for the supply would be
calculated for the purposes of the Law.
(2) For
the purposes of Regulation 25, the price at which the goods are obtained –
(a) pursuant
to a transaction treated for the purposes of the Law as being neither a supply
of goods nor a supply of services, is the consideration for the transaction; or
(b) pursuant
to an importation in respect of which the taxable person does not claim a GST
credit, is the value of the imported goods.
(3) Except
if paragraph (4) applies, for the purposes of Regulation 25, the
price at which the goods are sold is a price calculated in the same way as the
consideration for the supply of the goods would be calculated for the purposes
of the Law.
(4) If
the taxable person is an agent acting in his or her own name, for the purposes
of Regulation 25, the price at which the goods are sold shall be the total
of –
(a) a
price calculated in the same way as the consideration for the supply of the
goods would be calculated for the purposes of the Law; and
(b) the
amount of any consideration payable to the taxable person in respect of
services supplied by him or her to the purchaser in connection with the supply
of the goods.
27 Calculation of
terms for determining profit margin: auctions
(1) An
auctioneer acting in his or her own name in relation to the supply of goods at
an auction may choose to calculate prices for the purposes of
Regulation 25 by complying with paragraph (2), or paragraph (4),
or both those paragraphs.
(2) The
auctioneer may calculate for the purposes of Regulation 25 the price at
which the goods are obtained by deducting from the successful bid at the auction
the consideration for the supply (if chargeable to GST) of any services by him
or her to the vendor in connection with the supply of the goods.
(3) If
the auctioneer complies with paragraph (2), Regulation 26(1) and (2)
shall not apply in respect of the calculation of that price.
(4) The
auctioneer may calculate for the purposes of Regulation 25 the price at
which the goods are supplied by adding to the successful bid the consideration
for any supply (if chargeable to GST) of services by him or her to the
purchaser in connection with the supply of the goods.
(5) If
the auctioneer complies with paragraph (4), Regulation 26(3) and (4)
shall not apply in respect of the calculation of that price.
part 7
Miscellaneous
28 Relief
for charities on their expenses: Article 56 of Law
(1) The
Comptroller shall refund to a charity the GST that is chargeable on any
supplies to it of goods or services, and on any importation of goods by it, if
the following conditions are satisfied –
(aa) the
goods or services are used or to be used in
the furtherance of the charitable purposes of the charity, in accordance with
the constitution of the charity and, if the charity is registered under the Charities (Jersey)
Law 2014, in accordance with the requirements of that Law;
(a) such
records of those supplies and importations, and of the GST, are kept as the
Comptroller by direction requires;
(b) the
GST has actually been paid;
(c) such
records of supplies of goods or services, being supplies made by the charity,
are kept as the Comptroller by direction requires;
(d) application
is made for the refund at such time or times as the Comptroller specifies by
direction;
(e) application
is made in the approved form.[23]
(2) For
the purposes of Article 84(2)(af) of the Law, a prescribed matter is a
claim for a refund under this Regulation.[24]
(3) In
this Regulation –
“charitable purposes” has the meaning given by the Charities (Jersey)
Law 2014;
“charity” has the same meaning as in paragraph 5 of
Schedule 5 to the Law.[25]
28A Refund of GST to person not
established in Jersey: Article 56 of Law[26]
(1) The
Comptroller shall refund GST in the amount specified in paragraph (5),
being GST chargeable on the supply of goods or services to a person, if the
conditions set out in paragraphs (2), (3) and (4) are all satisfied.
(2) All
of the following requirements are satisfied –
(a) the
supply is for the purpose of a business carried on by the person;
(b) the
person has made a claim to the Comptroller for the refund;
(c) the
claim is made within the approved time or, if no time has been approved, within
12 months after the day when the supply occurred;
(d) the
GST has actually been paid;
(e) the
person has kept sufficient accounts, and other records, to substantiate the
claim under this Regulation.
(3) The
person, during any period to which the claim relates –
(a) is
a person whose home country is not Jersey;
(b) is
a person whose home country has a turnover tax comparable to GST (whether or
not at the same percentage or value as GST) and providing for arrangements (reciprocal
to those under this Regulation) for refunds to be made of the turnover tax on
supplies there to taxable persons whose home country is Jersey;
(c) does
not make any supplies of goods or services, being supplies that, for the
purposes of the Law, are supplies made in Jersey;
(d) is
the sole recipient of the supply to which the claim relates; and
(e) is
solely responsible for payment to the supplier in relation to the supply to
which the claim relates.
(4) The
claim is in the approved form, or if no form has been approved, in any form
sufficient to show that the conditions set out in paragraphs (2) and (3)
are satisfied.
(5) The
amount of GST to be refunded is such amount as is attributable to supplies made
by the person in their home country, being supplies that are chargeable to
turnover tax comparable to GST (whether or not at the same percentage or value
as GST).
(6) That
amount shall be subject to a reduction (if any) by direction to take account of
supplies made by the person in their home country that do not carry the right
to full credit for input tax.
(7) For
the purposes of Article 84(2)(af) of the Law, a prescribed matter is a
claim for a refund under this Regulation.
(8) In this
Regulation –
“GST chargeable” does not include any GST that, by
virtue of Regulations under Article 36(4) of the Law, is excluded from
credit referred to in Article 34(1) of the Law;
“home country” in relation to a person means the country
where the person has the person’s usual place of residence or the
person’s establishment;
“input tax” means something in relation to the turnover
tax in the home country that would correspond, in relation to GST, to input tax
in Jersey.
29 Disclosure of
GST: Article 94 of Law
(1) A
registered person shall notify a person to whom the registered person supplies
goods or services –
(a) whether
the prices indicated by the registered person for those goods or services
include GST on their supply or not; and
(b) at
what point GST will be indicated to the person to whom the registered person
supplies goods or services if it is not already included in those prices.
(2) In
every case, the registered person shall make the notification before the person
supplied enters a contract with the registered person for the supply.
(3) Subject
to paragraph (4), notification for the purposes of this Regulation may be
by any means reasonably certain to bring the substance of the notification to
the attention of the person supplied.
(4) If
contracts referred to in paragraph (2) are entered into in a shop, the
registered person shall make notification for the purposes of this Regulation
by signage at the entrance to the shop.
(5) A
person who contravenes this Regulation shall be guilty of an offence and liable
to a penalty of level 2 on the standard scale.
30 Citation
These Regulations may be cited as the Goods and Services Tax
(Jersey) Regulations 2007.