PURPOSE OF CONSULTATION
The purpose of this consultation is to seek the views of businesses on the operation of the International Services Entity (ISE) regime within the Goods and Services Tax (GST) system.
ISE status is an alternative to registration for GST for businesses which primarily serve non- residents, reducing the administrative and compliance burden which GST would place upon them. It was primarily created for and is mainly utilised by the financial services industry. The ISE regime is unique to Jersey. It has been in operation for three years and now is considered an appropriate time to conduct a general review to determine whether it is fit for purpose and where improvements could be made.
Together with a general review, this consultation also seeks the view of businesses on:
– achieving greater equity between the ISE fees charged
– reducing the compliance burden associated with ISEs
– raising additional revenue from ISEs.
The consultation document has been issued by Treasury and Resources following the Minister’s commitment in his Budget speech in December 2010 to review the current structure of ISE fees and increase the revenue generated from the financial services industry through ISE fees.
A number of questions are posed in the body of the Green Paper; however respondents are invited to comment by answering the general questions and those relevant to the business sectors in which they have an interest set out at the end of the paper.