With concerns ranging from Amazon deliveries and Spanish retailers to takeaway services and cross-border competition, the Government recently published Treaty Frequently Asked Questions document which provides some clarity around this issue. The guidance confirms that commercial goods entering Gibraltar will remain subject to customs procedures and tax requirements, while also setting out how deliveries, enforcement and online retail will operate under the new framework.

The FAQ appears to make it clear that EU-based retailers will not be able to bypass Gibraltar’s customs and transaction tax regime simply because the border is becoming more fluid. Goods sold commercially into Gibraltar will still need to comply with customs procedures and tax requirements.

Amazon and other EU online retailers

One of the most direct references appears under CUST-06, which addresses online sellers.

The guidance states that goods brought into Gibraltar for resale, including by online sellers, are considered commercial goods and are not treated as personal shopping. Commercial imports will therefore be subject to the relevant customs processes and tax requirements.

Spanish retailers and delivery operators

Under SERV-03, Government is asked whether Spanish retailers or delivery operators could simply use the open border and charge Spanish VAT instead. The response is:

“No Spanish retailer or delivery operator would be able to introduce goods into Gibraltar without that operator having to comply with the regimes established in the treaty with respect to the movement of commercial goods into Gibraltar.”

The guidance further states that such operators:

“will not, under any circumstances, be able to deliver goods in Gibraltar without those goods having undergone customs controls in accordance with the treaty.”

Can EU companies deliver directly into Gibraltar?

Under SERV-01, Government confirms that the Treaty requires Gibraltar to allow certain delivery operations, but only in a very limited way. The right extends only to:

• A single transport operation.
• Starting in the Campo de Gibraltar.
• Ending at one delivery point in Gibraltar.
• No multiple deliveries within Gibraltar.
• No picking up goods in Gibraltar for onward delivery elsewhere in Gibraltar.

Government also notes that Gibraltar retains flexibility to legislate domestically for road haulage activities and that, for now, the current regime will remain in place.

Deliveries involving installation or services

The FAQ also draws a distinction between delivering goods and providing services.

It states that any company wishing to provide services in Gibraltar, such as installation or on-site work, will need to be registered in Gibraltar for tax and social security purposes.

This could be relevant to furniture assembly, appliance installation and similar Amazon-style service offerings.

Cross-border takeaway and food delivery

One concern raised by hospitality businesses was whether Spanish takeaway operators could deliver food into Gibraltar and undercut local businesses. Government states that such deliveries would be commercial imports subject to customs procedures and would not realistically be capable of meeting the immediate delivery expectations of customers. It also acknowledges the risk of operators attempting to evade the rules and says Gibraltar is under a Treaty obligation to prevent this through enforcement and penalties.

Enforcement

Responsibility for enforcement will be split between:

• HM Customs Gibraltar for commercial goods entering Gibraltar.
• DVLD for road haulage activities.
• The Office of Fair Trading for product compliance and regulatory standards.

Government also says it intends to equip agencies with powers to deter and penalise non-compliance, including financial penalties and licence revocations where appropriate.

What this means for local retailers

The guidance appears designed to address one of the concerns many retailers have raised: that Spanish or EU-based businesses could simply start delivering directly into Gibraltar without being subject to the same costs and obligations as local businesses.

The Government’s position in this FAQ is that commercial deliveries into Gibraltar, whether from Amazon, Spanish retailers or other EU suppliers, must still pass through the Treaty customs framework and cannot simply be treated as personal shopping or ordinary border crossings.

The practical question that remains is how these controls and enforcement measures will operate day-to-day once the new arrangements are in force, which is likely to be an area many retailers will continue to watch closely.