Arrangement

A LAW to amend further the Goods and Services Tax (Jersey) Law 2007

THE STATES, subject to the sanction of Her Most Excellent Majesty in Council, have adopted the following Law –

“36A Input tax disallowed where consideration for supply is not paid

(1)     Where –

(a)     a person has become entitled to credit for any input tax; and

(b)     the consideration in money for the supply to which that input tax relates, or any part of it, is unpaid at the end of the period of 6 months following the relevant date,

the person shall be taken, as from the end of that period, not to have been entitled to credit for input tax in respect of the GST that is referable to the unpaid consideration or part.

(2)     For the purposes of paragraph (1), the ‘relevant date’ in relation to any sum representing consideration in money for a supply is whichever is the later of –

(a)     the date of the supply; and

(b)     the date on which the sum became payable.

(3)     General directions of the Comptroller may make such supplementary, incidental, consequential or transitional provisions as appear to the Comptroller to be necessary or expedient for the purposes of this Article.

(4)     Directions under paragraph (3) may, in particular –

(a)     provide for the restoration of the whole or any part of an entitlement to credit for input tax where there is a payment after the end of the period described in paragraph (1);

(b)     contain rules for ascertaining whether anything paid is to be taken as paid by way of consideration in money for a particular supply; and

(c)     contain rules dealing with particular cases, such as cases involving payment of part of the consideration in money or mutual debts.”.

“(2)    Sub-paragraph (1)(f) does not include a supply that is zero-rated by virtue of paragraph 1(1)(c) or (d) of Schedule 6.”.

“(c)    the supply by issue, transfer or receipt of, or any dealing with, any share, ownership of which, by virtue of the articles of association of the company in which the share is held, confers a right to occupy a dwelling;

(d)     the supply, by issue, transfer or receipt of, or any dealing with, any share, ownership of which, by virtue of the articles of association of the company in which the share is held confers a right to use a parking facility associated with a dwelling (but not the right to occupy the dwelling) provided that –

(i)      the issue, transfer or receipt of, or dealing with, the share conferring the right to use a parking facility occurs at the same time as the issue, transfer or receipt of, or dealing with, a share that confers a right to occupy the associated dwelling, and

(ii)      upon the issue, transfer or receipt of, or dealing with the shares described in clause (i), the recipient of the right to use the parking facility is also the recipient of the right to occupy the associated dwelling.”;

“(5)    For the purposes of this paragraph a parking facility –

(a)     means a garage, a parking bay designated for use by one person or a designated parking place in which a person has a right to use a parking bay; and

(b)     a dwelling and a parking facility are associated if –

(i)      the dwelling and parking facility are reasonably near to each other, and

(ii)      the share conferring the right to occupy the dwelling and the share conferring the right to use the parking facility must be owned by the same person.”.