Jersey, Guernsey and the UK e-invoicing mandate

The UK e-invoicing mandate does not apply in Jersey or Guernsey. The Channel Islands are outside the UK for VAT purposes, and HMRC's VAT guide states plainly: "There's no VAT in the Channel Islands." The UK mandate is built on UK VAT invoices, so Channel Islands businesses are not caught by it under their own law.

But many UK businesses trade with the islands, and some island businesses are registered for UK VAT. This guide explains where the edges are.

Not the same as the Isle of Man

People often group the Crown Dependencies together. For VAT they are very different:

	Isle of Man	Jersey	Guernsey
Part of the UK VAT area?	Yes, treated as part of the UK for VAT	No	No
Local consumption tax	VAT (Manx law, mirrors UK)	GST at 5%	None today. GST approved in principle, timetabled for Q1 2029
Registration threshold	£90,000	£300,000	Not yet set
Goods to and from Great Britain	Not imports or exports	Imports and exports	Imports and exports
E-invoicing requirement announced?	No	No	No

For the Isle of Man, see our separate guide to e-invoicing in the Isle of Man.

Jersey: GST, not VAT

Jersey's Goods and Services Tax has a standard rate of 5%. Businesses with taxable turnover of £300,000 or more in a 12-month period must register, and others can register voluntarily, according to the Government of Jersey. We found no announced plan for a Jersey e-invoicing mandate as of 20 October 2026.

Guernsey: GST on the way, no e-invoicing plan

Guernsey has no VAT or GST today. In October 2026, the States of Deliberation approved the 2026 Tax Reform package, which includes a goods and services tax at a standard rate of 3%. The package published in June 2026 proposed a start in 2028; the States' FAQs now list GST for the first quarter of 2029. The FAQs also say any later rise to 4% and then 5% must follow an assurance review. Check gov.gg for the final details.

Legislation still has to be drafted and approved. No e-invoicing rules have been proposed, and a new GST would not bring Guernsey into the UK mandate.

UK businesses selling to the Channel Islands

HMRC says goods passing between the Channel Islands and the UK "are imported or exported for VAT purposes". In practice:

• Goods sent from the UK to a Channel Islands customer are generally exports, which can be zero-rated if the export conditions and evidence rules are met.
• Services follow the UK place of supply rules. Many B2B services to a Channel Islands business customer are outside the scope of UK VAT, but check HMRC's Notice 741A for your service.

HMRC's guidance says you do not have to issue VAT invoices for zero-rated supplies. Whether the UK mandate will cover invoices for exports and cross-border services has not been confirmed. The consultation response notes that respondents asked for "clarity on scope, including B2B, B2G, and cross-border transactions". The roadmap due at Budget 2026 on 28 October 2026 should help.

Even if cross-border invoices are left out, you may find it simpler to send everything through one process. Many island businesses could receive Peppol invoices if they choose to join. Ask your customers what they can accept.

Channel Islands businesses selling into the UK

An island business that is not registered for UK VAT does not issue UK VAT invoices. The UK mandate should not apply to it. Its UK business customers will handle VAT through the normal rules for imported goods and reverse-charge services.

Some island businesses are registered for UK VAT, for example because they make taxable supplies in the UK. GOV.UK says businesses based outside the UK must register for UK VAT, whatever their turnover, if they supply goods or services to the UK, subject to the rules in Notice 700/1. A UK-registered island business would issue UK VAT invoices for those supplies. Whether non-established businesses will be in scope from April 2029, and on what terms, is not confirmed. If you are in this group, watch the roadmap closely.

Should Channel Islands businesses join Peppol?

There is no legal requirement. The UK has confirmed Peppol as its core e-invoicing network, so large UK buyers will increasingly process invoices this way. Joining through a provider is voluntary and can make you easier to pay. Peppol identifiers are not limited to UK VAT numbers. Our Peppol participant ID guide explains the options.

What to do now

UK businesses

1. List your Channel Islands customers and suppliers separately from Isle of Man ones.
2. Check you are treating goods to the islands as exports, with the right evidence.
3. Wait for the roadmap before changing cross-border invoicing.

Jersey and Guernsey businesses

1. If you are registered for UK VAT, expect UK e-invoicing questions and talk to your adviser.
2. Ask your large UK customers whether they plan to require Peppol invoices.
3. Keep an eye on local GST changes, especially in Guernsey.

For the wider scope, see who is in scope of the mandate.