Get VAT deducted from Amazon Prime subscriptions for Islanders
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While the retail giant clearly understands Jersey’s VAT-free status – and therefore that it is a distinct self-governing, jurisdiction with its own tax regime that is not part of the UK – by removing VAT from items delivered to Jersey, Islanders are still being overcharged for Prime subscriptions.
The £7.99 subscription fee for Prime UK entitles users to ‘unlimited’ one-day shipping services and a range of other benefits including video streaming, access to music, podcasts and e-books.
With a 20 per cent reduction it should cost £6.66 a month.
UK value-added tax – a sales tax added to the price of goods and services – is charged at 20 per cent, while the Jersey equivalent – the goods and sales tax – is five per cent. However, GST is not payable on a simple subscription which does not involve the importation of physical goods.
Jersey residents who have tried to have the VAT taken off their memberships have been met only with generic responses that do not not seem to understand that Channel Islanders are not required to pay VAT.
As a result, many people are paying more than they should.
The Amazon campaign follows a similar initiative by this newspaper’s Fair Play consumer campaigning team a decade ago which was successful in getting Sky to deduct VAT from Islanders’ satellite television subscriptions. The JEP Fair Play team also succeeded in getting retailers in Jersey to remove the UK sales tax from items they sold.
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