UK to the Channel Islands...customs forms

[Sailfree]

Worth pointing out that for goods and services, the Channel Islands are not outside the customs union of the EU ( by agreement) for the purposes of VAT , you have exported the goods as regard VAT , but teh goods have not left the Customs Union terrority.

Not sure what you are saying.

Goods bought in the CI are VAT free and if above the gift value allowed by any EU country have to be declared as an import at first EU port visited from CI - hence requirement to fly the "Q" flag on arrival at first EU port. Its something that is rarely checked but transgress at your peril!

See post #28 on thread "Cross Channel Documents" of an example of an actual fine.

Be aware that not everything in CI is cheaper than UK as delivery costs are higher eg M & S charge a 15% markup on UK labelled food prices in guernsey. I think there is also a small sales tax on other items.

 

[prv]

I think there is also a small sales tax on other items.

Certainly the receipt I have here from Blue Water Supplies in Jersey has a box for 5% GST, which they describe as the local equivalent of VAT.

I didn't have to pay that as I was buying goods online for export...

...I got to pay 20% UK VAT instead.

Pete

 

[guernseyman]

Not sure what you are saying.

......
Be aware that not everything in CI is cheaper than UK as delivery costs are higher eg M & S charge a 15% markup on UK labelled food prices in guernsey. I think there is also a small sales tax on other items.

No, Jersey has a Sales Tax, the Guernsey Bailiwick does not.

 

[jimbaerselman]

Worth pointing out that for goods and services, the Channel Islands are not outside the customs union of the EU ( by agreement) for the purposes of VAT , you have exported the goods as regard VAT , but teh goods have not left the Customs Union terrority.

Ooops. Nice point. They are within the customs union, outside the VAT zone (cos they don't have VAT), have free movement of goods, and (slight correction) only conditional free movement of people and services.

Of course, there's current noise going on about the use of a VAT free territory to sell goods by post with VAT due to UK addresses - Amazon, for instance.

 

[longjohnsilver]

The ex HM at Exmouth used to collect the customs form from the box outside his office and store them in his drawer until he couldn't close it, whereupon he threw them in the bin and started again. He was there for about 15 years and never once was a form collected by HM Customs.

 

[Angele]

Ooops. Nice point. They are within the customs union, outside the VAT zone (cos they don't have VAT), have free movement of goods, and (slight correction) only conditional free movement of people and services.

Sorry, but I don't think that is true. If they were within the customs union of the EU then you would be able to move goods freely between the Channel Islands and the UK/Continental Europe without restriction.

You cannot.

Not only is VAT chargable on goods bought in the Channel Islands that are then reimported to the EU, but many duties are too. For example the duty free allowance between the CIs and the EU is the 1 litre of spirits/2 litres of fortified wine, etc. Above that you pay duty.

Not my definition of a customs union.

Of course, there's current noise going on about the use of a VAT free territory to sell goods by post with VAT due to UK addresses - Amazon, for instance.

The "fulfilment" business to which you refer only applies to goods below a certain value. Can't remember the exact amount but I think it is below £20. On anything above that, VAT has to be paid on import.

The UK killed off that business in the CIs a year or two ago when they unilaterally removed the small value VAT exemption of goods sent from the Islands. They did not similarly impose the same ban on other jurisdictions taking advantage of that little wheeze, since to do so would have needed to get all the other EU nations to agree. They just picked on the islands because they could. Harumph!

Edit: more details here http://en.wikipedia.org/wiki/VAT-free_imports_from_the_Channel_Islands

 

[prv]

The "fulfilment" business to which you refer only applies to goods below a certain value. Can't remember the exact amount but I think it is below £20. On anything above that, VAT has to be paid on import.

£18, I believe. Ideal for sending DVDs VAT-free, hence Play.com as the first to exploit the loophole, followed by others.

Pete

 

[jimbaerselman]

Quote Originally Posted by jimbaerselman
Ooops. Nice point. They are within the customs union, outside the VAT zone (cos they don't have VAT), have free movement of goods, and (slight correction) only conditional free movement of people and services.

Sorry, but I don't think that is true. If they were within the customs union of the EU then you would be able to move goods freely between the Channel Islands and the UK/Continental Europe without restriction.

From your reference:

The Channel Islands have a special relationship with the United Kingdom as set out in Protocol 3 to the United Kingdom's Act of Accession 1972, which formed part of the Treaty of Accession. Under this agreement the Channel Islands are not part of the European Union but are part of the customs territory of the union. This means they do not charge VAT on purchases but there is a free movement of industrial and agricultural goods in trade between the Islands and the Union.

Messy, innit.

I guess that's why the French don't bother tracking boats to and from CI, while HMRC does - heaven knows why, since they can track through France anyway . . .

 

[Angele]

Messy, innit.

Hmm! I take it back.

Funny kind of customs "union" in which some goods can move freely, but the vast majority cannot.

Messy is probably too polite a description.