Gibraltar Transaction Tax: Implications of Proposed Sales Tax Post-Brexit Treaty

• Gibraltar likely to introduce a turnover tax once UK and EU agree on post-Brexit treaty
• Key features of the new sales tax include:
• Gibraltar Transaction Tax (GTT)
• Likely rate between 10% and 15%
• Only charged at point of sale to final consumer
• No deductibility for businesses
• Possible exemptions for medicine, education, children’s clothing
• Brexit arrangements between UK and EU on 24 December 2020 did not cover Gibraltar
• Treaty close to being agreed covering freedom of movement of people and border controls with Spain.

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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