The Minister for Treasury and Resources, Deputy Susie Pinel, has agreed new timetables for two proposed changes to the tax system: a reduction in the “de minimis” GST level, and the introduction of simple interest on tax debts.
The Minister has announced that the reduction in the “de minimis” level of GST from £240 to £135 will come into effect from 1 October 2020. This means that any private individual ordering goods from outside Jersey will need to pay GST if their order costs more than £135.
In addition, plans to charge interest on new tax debts will now be deferred until 1 January 2022 at the earliest. Currently, taxpayers are charged a fee if they underpay their taxes and fail to pay the full amount by 30 November each year. Both businesses and individuals will have interest applied to their tax debts, if they are incurred after 1 January 2021.
Minister for Treasury and Resources, Deputy Susie Pinel, said: “I have agreed these changes to our existing plans in response to the economic challenges posed by the COVID-19 outbreak.
“I originally deferred the reduction of the de minimis level from 1 July 2020 to 1 January 2021 to support Islanders who would be reliant on home deliveries during lockdown. As we are opening up the local economy, bringing down the “de minimis” level will enable on-Island business to compete more fairly with off-Island retailers, supporting our local economy.
“I have also decided to defer charging interest on tax debts in recognition that many businesses and individuals will suffer financially due to the pandemic at least in the short term.”
Murray Norton, Chief Executive Officer of the Jersey Chamber of Commerce, said: “We are delighted that the Treasury Minister has chosen to support local retailers at such a critical time. Deputy Pinel announced this reduction in her last Budget and we fully support her decision to implement it in time to help retailers recover from the COVID-19 crisis.
“Making the change from 1 October will afford local retailers the best opportunity of securing a good quarter’s sales in the run up to Christmas. Jersey Chamber of Commerce urges all islanders to support local retailers as much as they can in these unprecedented times."
Government of Jersey News Release.