The utility had sent a formal letter to all deputies prior to last week’s States meeting, which highlighted a number of operational difficulties it believed a goods and services tax might pose. But following the States’ decision to approve GST, Guernsey Post said its attention had immediately turned to preparing for the future, and how GST would work in practice.
‘Ahead of the GST debate, Guernsey Post wrote to its shareholder to outline a number of operational considerations associated with the introduction of GST, particularly in relation to the movement of goods and Customs processes,’ said a Guernsey Post spokesman.
‘Now that GST has been approved, our focus is on working with relevant stakeholders to understand the requirements and processes needed to support successful implementation for postal goods coming into the island.’
At this month’s debate, the States narrowly approved a new tax reform package, which includes the introduction of a 3% GST planned for 2029 – with a potential incremental path to 5% in future years. It will mean new arrangements are required for collecting tax on goods imported into the island, including items ordered online and delivered through the postal system.
Jersey, which already has a 5% GST, also applies the local tax to goods ordered online and arriving by post.
Overseas retailers and online marketplaces selling more than £300,000 worth of goods annually to private customers in the island have been required to register for GST since July 2023. States of Jersey said this system included larger retailers, including Amazon’s marketplace. It also said Customs, shippers, couriers and Jersey Post worked together to ensure goods sold through GST-registered retailers could be recognised by the system and cleared accordingly.
Registered retailers collect Jersey’s 5% GST directly from the customer at the point of sale, rather than when the parcel arrives in the island.
Purchases from unregistered retailers go through a different system. They are subject to 5% GST if their value exceeds £60, and this is due on arrival.
Such parcels can be detained by Jersey Customs until the recipient has declared it and paid what is owed.
On its website, Jersey Post states customers are notified by letter or email if the tax is due. They are given a reference number, which is entered into Jersey Customs’ online declaration system.
Once any tax or duty has been paid, and it has cleared customs, Jersey Post is notified that it can deliver the parcel.
Jersey Post advises customers to allow one working day for delivery following Customs clearance, and advises businesses receiving goods to submit Customs declarations early, in an effort to minimise delays.
The precise arrangements which will apply in Guernsey have yet to be established.
Detailed preparations will now take place ahead of GST being introduced, with Guernsey Post among the organisations which will have to adapt their systems and processes to accommodate the new tax.