Guernsey VAT: A Guide for Foreign Investors (2025)

1. No VAT in Guernsey

• Guernsey does not levy VAT on goods and services.
• There is no requirement for businesses to register for VAT in Guernsey.
• Businesses operating in Guernsey do not charge VAT on their sales.

2. Import and Export Considerations

• Goods imported into Guernsey may be subject to import duties, but these are separate from VAT.
• When exporting goods from Guernsey to jurisdictions that impose VAT (e.g., the UK or EU), the recipient may be liable to pay VAT upon import.
• Businesses trading with VAT-registered entities in the UK or EU may need to comply with VAT regulations in those jurisdictions.

3. Sales to UK and EU Customers

• Goods and services supplied from Guernsey to VAT-registered businesses in the UK and EU are generally treated as outside the scope of VAT.
• UK and EU importers may need to account for VAT under their local regulations.
• Businesses in Guernsey selling digital services to UK or EU consumers may be required to register for VAT in those jurisdictions under their local VAT rules.

4. Alternative Taxation in Guernsey

• Instead of VAT, Guernsey applies import duties and excise duties on specific goods, such as alcohol and tobacco.
• A Goods and Services Tax (GST) is not currently in place, but proposals have been considered.