Guernsey's Policy and Resources Committee proposes a 3% GST, a new vehicle tax, and changes to income and corporate tax rates to close a £50m funding gap. The GST would take effect in 2028, with vehicle taxes ranging £25-£280 annually and a 10% corporate tax rate extended. Income tax for earnings £15,800-£28,000 would be set at 15% and social security contributions would not apply to earnings below £11,222.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
Bailiwick Express · about 2 months ago
The Bailiwick Express reader letter argues that Guernsey’s proposed 3% GST will not deliver the projected £55m revenue, instead yielding a net income of only about £12.3m after costs. It highlights one‑off implementation costs of £40.9m, ongoing annual costs of £30.7m, and a £30m increase in the States Superannuation Fund liability, concluding that the claimed £50m funding gap is negligible.
Bailiwick Express · 7 months ago
Guernsey officials discuss that any future increase to the proposed 5% GST would require a two‑thirds super majority under the island’s Reform Law. The introductory rate would be 5% if retail food sales are included, or 6% otherwise, and a 6% rate would be needed to raise about £50 million net. The proposal aims to keep the tax broad and simple to limit future rate hikes.
VATIT · about 4 hours ago
In the EU, the distinction between a branch and a subsidiary determines whether intercompany services are subject to VAT. The FCE Bank decision of 2006 establishes that services supplied by a head office to its branch are outside the scope of VAT, while the Skandia and Danske Bank rulings show that VAT group membership can change this outcome.
Sni Technology · about 4 hours ago
Europe: SAP's Plants Abroad and RITA solutions let a single legal entity manage multiple VAT registrations across member states, simplifying reporting. The tools support tax code configuration, reporting by jurisdiction, and integration with ERP, but do not resolve tax determination or localisation requirements.
NWB Datenbank · about 7 hours ago
Germany: The Bundeszentralamt für Steuern has set a deadline of 18 December 2023 for Dutch taxpayers to submit electronic applications for the 2022 input tax refund period. Taxpayers may file a single application for the whole period or quarterly applications, but must withdraw any previously submitted applications.
Crowe · about 15 hours ago
In the UK, the Upper Tribunal ruled that Invisalign clear aligners are not dental prostheses for VAT exemption purposes. The decision means that these supplies are standard-rated and businesses must review their VAT position. HMRC may now review the VAT treatment of aligners across the sector.
Put your brand alongside trusted tax-tech intelligence across 150+ countries.
Key Takeaways
If approved, the GST will come into force from 2028.
Charges will range between £25 and £280 a year based on weight and emissions.
A 10% rate will be extended for companies.
Those earnings will be taxed at 15%.
No contributions on earnings below £11,222.
Primary source
Read the full article at BBC NewsThis summary was published on VATfaqs.com on 8 June 2026. It relates to VAT developments in Guernsey. The original source is BBC News.
