Internet shoppers from the Channel Islands will no longer have to describe themselves as living in the UK.
Jersey and Guernsey are to be included on a standard database used by many websites, managed by the International Standards Organisation (ISO).
Separate country codes for the islands were approved after talks with the UK Department of Trade and Industry.
Jersey's Chief Minister Frank Walker said the change would stop islanders unnecessarily being charged VAT.
Jersey, Guernsey and the Isle of Man have not had separate ISO designated country codes until now.
Mr Walker said: "The current situation is clearly unsatisfactory for anyone who uses the internet to order goods or services, because Jersey residents have been unable to show that they should not be charged VAT.
"We expect that computer software developers and those using business software applications will increasingly use this code to designate Jersey as a separate territory from the UK."