Do You Charge VAT to Guernsey from UK? (What You Must Know)

Selling to Guernsey from the UK but not sure if VAT applies? You’re not alone, and charging it when you shouldn’t (or skipping it when you should) could cost you.

This quick guide breaks it down simply, so you know exactly what to charge, what to report, and how to stay compliant without the stress.

Key Takeaways

• Guernsey is outside the UK VAT area, so don’t treat it like a domestic sale.

• Goods are usually zero-rated, but you still need to report the sale and keep proof it left the UK.

• Services are trickier: if it’s B2B, there’s no VAT. For B2C, most services are outside the scope of UK VAT, but check if ‘use and enjoyment’ rules apply, especially for digital services.

Should I Charge VAT to Customers in Guernsey?

No, in most cases, you don’t need to charge UK VAT when selling to customers in Guernsey.

That’s because Guernsey is outside the UK VAT zone. So:

For physical products:

These are treated as exports. You don’t charge VAT, but you must keep proof that the goods left the UK (like shipping documents).

For services:

If your customer is a business in Guernsey, you don’t charge VAT. For consumers, most services are outside the scope of UK VAT, but check if ‘use and enjoyment’ rules apply, especially for digital services.

RECOMMENDED READING: Do You Charge VAT to Jersey from the UK? (A Quick Guide)

What Do I Need to Do on My VAT Return?

If you're selling goods from the UK to a customer in Guernsey, here’s what you need to do:

• You don’t charge VAT to your customer, but you still have to record the sale on your VAT Return.

• Report the value of the sale as a zero-rated export.

• Keep proof that the goods left the UK (like shipping documents or courier tracking info). HMRC can ask for this later.

• Enter the value in Box 6 (total sales) of your VAT Return. Don’t include it in Box 8 or 9 - Guernsey isn’t in the EU. This is a common scenario when selling goods to Guernsey VAT free.

Quick Summary: Even if you don’t charge VAT on a sale to Guernsey, you still need to report the sale and keep proof that it was exported. HMRC expects accurate records even for zero-rated or VAT-exempt sales.

What We Think

Many small business owners don’t realise that Guernsey is treated like an overseas country for VAT. That’s why we often see people either charging VAT when they shouldn’t or not reporting the sale at all.

We think the rules could be explained much more clearly. It’s easy to assume Guernsey follows UK VAT rules, but that’s not the case, and HMRC doesn’t always make that obvious.

If there’s one thing we wish more businesses knew, it’s this: don’t charge VAT, but do report the sale and keep proof the goods left the UK.

Getting this right can save you from fines or questions later on.

How JAFA Can Help

At JAFA, we know how tricky VAT rules can get, especially when it’s not clear who you should charge, what you should report, or what HMRC expects.

If you’re unsure whether to add VAT, how to record a Guernsey sale, or what documents to keep, we’ve got you covered. We help small businesses:

• Avoid costly VAT mistakes by checking whether VAT applies or not

• File VAT returns correctly including zero-rated exports

• Stay audit-ready with the right export evidence

• Understand the rules in plain English

Whether you only sell to Guernsey once in a while or ship there regularly, JAFA can help you stay compliant and save you the stress of figuring it out alone.

Contact our expert accountants based in Birmingham, UK, either by booking a FREE discovery call or calling us on +44 121 227 6277.