92002E3620

WRITTEN QUESTION P-3620/02

by Wolfgang Ilgenfritz (NI) to the Commission

(9 December 2002)

Subject: Position of Jersey in the EU

Is Jersey a member of the European Union?

Do businesspeople in Jersey have a sales tax identification number for tax-free purchases in the European Union?

If Jersey has a special status in the EU, the Commission is asked to forward the relevant provisions.

Answer given by Mr Prodi on behalf of the Commission

(14 January 2003)

Jersey, a British Crown dependency, is part of the Union in so far as the United Kingdom is responsible for its external relations. It does, however, have a special status. Pursuant to Article 26(3) and Article 27(d) of the Act concerning the conditions of accession to the Communities of the Kingdom of Denmark, Ireland and the United Kingdom of Great Britain and Northern Ireland, a new paragraph was added to Article 299 of the EC Treaty and Article 198 of the Treaty establishing the European Atomic Energy Community. The paragraph reads as follows:

This Treaty shall apply to the Channel Islands and the Isle of Man only to the extent necessary to ensure the implementation of the arrangements for those islands set out in the Treaty concerning the accession of new Member States to the European Economic Community and the to European Atomic Energy Community signed on 22 January 1972.

The special arrangements laid down for the Channel Islands and the Isle of Man are set out in Protocol No 3 attached to the Act of Accession, of which, under Article 158 of the Act, they form an integral part.

As regards VAT, Jersey does not belong to the tax territory as defined in Article 3(2) of the Sixth VAT Directive(1). Firms in Jersey do not therefore have an individual Union VAT identification number. However, deliveries of goods from or to the Channel Islands are treated as exports and are exempt from VAT as set out in Article 33a of that Directive.

(1) 77/388/EEC: Sixth Council Directive of 17 May 1997 on the harmonisation of the laws of the Member States relating to turnover taxes Common system of value added tax; uniform basis of assessment OJ L 145, 13.6.1977.