FAQ
Common questions
Quick answers based on official government briefings and treaty provisions.
What is the transaction tax?
It replaces Gibraltar's current import duty system. Unlike VAT, it's charged once at the point of import, not at every stage of the supply chain. There's no input/output tracking. If you import goods into Gibraltar, you pay transaction tax on the customs value (goods + shipping + insurance + packing).
Is this the same as VAT?
No. Transaction tax is simpler - it's a single charge at import. VAT is charged at every stage of production and sale with credits for tax already paid. Gibraltar's system has no input/output mechanism. However, the rates are aligned with EU VAT minimums (17% = Luxembourg's rate, the lowest in the EU).
Do I pay on goods I buy in Spain and bring across?
For personal use: you have a €300 allowance per person crossing by land, €430 by sea or air. Above that, yes, transaction tax applies. After April 2029, these fixed allowances are replaced by EU-style "personal use" rules with no value cap, but you must prove the goods are for personal consumption.
What about online orders from the UK?
UK-origin goods that meet TCA (Trade and Cooperation Agreement) rules of origin pay no customs duty, but they still pay transaction tax. UK goods that don't meet TCA rules pay the EU Common External Tariff PLUS transaction tax. Either way, transaction tax applies.
What if I buy from an EU country?
No EU VAT is charged on goods destined for Gibraltar (since we're not in the EU VAT area). However, transaction tax is charged when the goods arrive in Gibraltar. So you pay the supplier's price minus VAT, then transaction tax on arrival.
Does this affect services businesses?
Transaction tax only applies to goods at import. If your business is purely services (accounting, legal, consulting, software), you're not directly affected by the transaction tax. However, EU regulatory standards may apply to certain service sectors under other provisions of the treaty.
What's the grace period for existing stock?
You have 3 months from 10 April 2026 (until 10 July 2026) to sell existing stock that doesn't meet EU standards. After that date, all goods on sale in Gibraltar must be fully EU-compliant. For goods already in transit on 10 April, the grace period is 2 months (until 10 June).
What is CE marking and do I need it?
CE marking is the EU's mandatory conformity mark for many product categories including electronics, toys, machinery, medical devices, and construction materials. If you import these goods, they must carry a valid CE mark from 10 April. Food, clothing, and cosmetics don't need CE marking but have their own EU compliance requirements.
What about fuel prices?
No excise duty on fuel for the first 3 years. After April 2029, fuel excise must be within 6% of Spanish rates. This is one of the biggest transitional protections in the treaty.
Who enforces all this?
The Office of Fair Trading (OFT) enforces product compliance. Gibraltar Customs handles the transaction tax and customs procedures. A joint Gibraltar-Spain consultative body monitors market distortions and can recommend rate adjustments.
Where can I read the official sources?
All our information is sourced from Government of Gibraltar Technical Notices (72/2026 and 63/2026), Chamber of Commerce briefings, and professional analysis from Hassans, RSM, and Sovereign Group. See our Sources page for direct links.