GTT sales tax once UK-EU treaty completed
The Mediterranean UK overseas territory of Gibraltar is likely to introduce a turnover tax once the UK and EU have agreed a post-Brexit treaty. Key features of the new sales tax are:
- 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 agreed between the UK and EU on 24 December 2020 did not cover Gibraltar. A treaty is now close covering freedom of movement of people and border with Spain controls.