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.
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Bailiwick Express · about 1 month 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.
BBC News · about 1 month ago
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.
RTCSuite · 4 minutes ago
Belgium has approved a pre-draft law to introduce mandatory near real-time VAT e-reporting from 1 January 2028, replacing the annual client list. The new system will require both suppliers and customers to transmit a subset of invoice data via Peppol, with enforcement beginning in 2028.
Revenue · 18 minutes ago
Ireland will require large VAT-registered corporates to issue eInvoices for domestic B2B transactions from 1 November 2028. The eInvoices must comply with EN 16931 and a subset of data must be reported to Revenue.
The Independent · about 3 hours ago
The UK government will remove VAT from domestic electricity bills from 1 October 2026, cutting the rate from 5% to 0%. The change is expected to save households around £45 a year and will be funded by cancelling the Digital ID programme.
The Independent · about 5 hours ago
In the UK, the government announced an £850 million tax cut on energy bills, making electricity bills VAT free from 1 October 2026 in England, Scotland and Wales. Northern Ireland remains exempt because EU VAT rates apply under the Windsor Framework, preventing the cut from applying there.
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Key Takeaways
The introductory GST rate would be 5% if retail food sales are included in the tax base.
A 6% GST rate would be required to raise about £50 million net if the tax base is broad.
A two‑thirds super majority is required to change the GST rate under the Reform Law.
The super majority applies to major decisions such as new laws, duty changes, and raising charges like GST.
Primary source
Read the full article at Bailiwick ExpressThis summary was published on VATfaqs.com on 15 January 2026. It relates to VAT developments in Guernsey. The original source is Bailiwick Express.
