Formal efforts are to begin to stop digital giants including Apple from charging people in the Channel Islands VAT.
While most companies who deliver physical products bought online don’t charge the UK sales tax in the islands, those who sell so-called digital services online, including Apple Store, Google Store, Microsoft, Spotify, Amazon Prime and Netflix, generally add a 20% levy to their prices.
In Guernsey there is no sales tax, while in Jersey the rate is 5%.
Politicians in Jersey have voted to instruct the island’s Treasury Minister to undertake “a programme of engagement and awareness-raising with UK and EU digital service suppliers” to ensure they levy the correct tax.
While that move is designed to save customers in Jersey money, Guernsey would likely benefit by association, too.
Sky automatically charges VAT but does remove it for Channel Islands customers if they contact them directly.
The proposition, brought by Senator Philip Ozouf, was adopted during the 2018 Jersey budget debate.
