Editing Economy of Jersey (section)

=== GST and VAT avoidance ===
A value-added tax system is in place known as Goods and Services Tax (GST), which is set at 5 per cent. Some items are zero-rated - but not food - and imported products below £60 are exempt.<ref>{{Cite news |date=2024-06-18 |title=Paying GST for online shopping and imported goods |url=https://www.gov.je/TaxesMoney/GST/GSTCustomers/pages/declaringpaying.aspx |archive-url= |archive-date= |access-date=2024-06-18 |work=gov.je |language=en-GB}}</ref>

The difference between the GST and UK/EU VAT systems previously led to VAT avoidance facilitated through the island. This included fulfilment by [[Play.com]] and [[Amazon (company)|Amazon]], among other large retailers.<ref name=":52">{{Cite web |title=EU to close LVCR loophole completely |url=https://jerseyeveningpost.com/news/2015/06/29/eu-to-close-lvcr-loophole-completely/ |url-status=dead |archive-url=https://web.archive.org/web/20210114080140/https://jerseyeveningpost.com/news/2015/06/29/eu-to-close-lvcr-loophole-completely/ |archive-date=2021-01-14 |access-date=2021-01-12 |website=jerseyeveningpost.com |language=en}}</ref> [[Low-value consignment relief]] provided the mechanism for [[VAT-free imports from the Channel Islands]] to the UK. In April 2012, the EU closed this loophole, leading to the closure of many island businesses and the loss of a number of jobs on the island.<ref name=":52"/>