Shops are keeping VAT on, says minister
HOUSING minister Dave Jones is calling on Commerce & Employment to launch an investigation into retailers to make them provide proof of their freight charges.
Deputy Jones claims that shops in Guernsey are keeping on 20% VAT when importing items from the UK and justifying it by saying it is to cover freight charges.
He wants retailers to provide proof of their freight costs and tailor prices to match.
But Commerce & Employment said it had no plans to investigate and businesses were free to charge whatever price they wanted.
'We need a proper investigation into freight charges because I don't think it's justifiable,' Deputy Jones said.
'There is no VAT in Guernsey and retailers should recognise that. They are leaving on VAT that bears no relevance to Guernsey and I believe people are being overcharged in shops.
'If retailers are saying they leave VAT on to cover freight charges then they should have to prove that – or if they want to charge VAT, perhaps we should take it off them because there is no VAT in Guernsey. They are transferring the UK duty on goods to themselves and in my view that is wrong.
'There should be an investigation into why shops are charging it. If they try to justify it as freight charges, we need them to prove what those freight charges actually are and compare them to what's actually being charged.'
Deputy Jones also felt it was not in local retailers' best interests to leave VAT on goods from the UK because it drove more people towards internet shopping.
