Buying online will cost more for people in Jersey from this October after the government decided to add GST to purchases over £135.
At the moment, everything costing less than £240 is exempt from the 5% charge.
It means, for example, a £150 purchase will cost £7.50 more.
The Treasury has confirmed it is lowering the threshold for the tax from 1 October to encourage people to shop locally.
The Treasury originally announced the change to the 'de minimis' GST threshold would come into force in July. However, it was then deferred until January 2021 to help islanders who were reliant on home deliveries during the lockdown.
But the island's Treasury Minister, Deputy Susie Pinel, says the decision to bring it forward will allow local businesses to compete on as more level playing field with off-island retailers.
As we are opening up the local economy, bringing down the “de minimis” level will enable on-Island business to compete more fairly with off-Island retailers, supporting our local economy.
The move has also been welcomed by Jersey Chamber of Commerce's CEO.
Making the change from 1 October will afford local retailers the best opportunity of securing a good quarter’s sales in the run up to Christmas. Jersey Chamber of Commerce urges all islanders to support local retailers as much as they can in these unprecedented times.