GST on Vehicles - importing a vehicle into Jersey (2.5.8.L2)

LOCAL INFORMATION

2.5.8. L2
GST on Vehicles - importing a vehicle into Jersey

Extent:      Jersey

Updated:   March 2017
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Words you may need to know

Vehicle - a car, lorry, van used for transporting goods or people or anything considered to be one under the law

Importing - bringing in to Jersey

Vehicle Registration Duty - this was a tax which was paid when a new vehicle was registered

Registered - listed. A vehicle is registered (the details of the vehicle and the owner given to the authorities) so there is a record of who owns what

GST - Goods and Services Tax

Motor Trader - someone who buys and sells cars for a living

Special dispensation - special conditions or allowance

Vehicle Registration Duty was replaced by GST on the 6th May 2008. The GST rate of 5% is payable on the full selling price of a new vehicle bought from a motor trader.

There is a "Margin Scheme" for the Motor Trade which gives a special dispensation that allows GST to be charged only on the difference [or margin] between what they buy the car for and what they sell the car for on second-hand motor vehicles - not on the full selling prices. For more information see www.gov.je/TaxesMoney/GST/Pages/default.aspx

For more information on registering your vehicle in Jersey see http://www.gov.je/Travel/Motoring/BuyingSellingVehicle/Pages/RegisterVehicle.aspx