Customs and Excise

Counter hours

From Monday 19 April 2021

Monday to Friday 10am to 4pm.

You can also make an appointment by calling +44 1624 648130 or emailing customs@gov.im

Privacy Notice

The Treasury collects information about you in order to administer taxation and carry out other functions for which it is responsible (eg. National Insurance, customs and excise duties, property rates, social security benefits, state pensions and legal aid etc.), and for the detection and prevention of crime.

Whilst that information will primarily be provided by you, where the law allows we may also get information about you from other organisations, or give information about you to them. This may be to check the accuracy of the information provided, prevent or detect crime or protect public funds in other ways. These organisations may include other government departments, the police and other agencies.

To find out more about how we collect and use personal information, contact any of our offices or visit our website.

Important updates

To receive important news from Customs and Excise, including regular updates of changes to UN/EU sanctions, and to import, export and trade controls, subscribe to the RSS feed for Customs and Excise news releases.

VAT Deferral New Payment Scheme

COVID-19 VAT Deferral Scheme - Guidance for Isle of Man (IOM) traders

Payment options for VAT deferred due to coronavirus (COVID-19) 

Please follow this guidance to find out how to settle VAT payments that were originally deferred between 20 March and 30 June 2020. If you cannot pay now you can apply to join the VAT deferral new payment scheme.

If you deferred VAT payments that were originally due between 20 March and 30 June 2020 and still have payments to make, you can:

• pay the deferred VAT in full, on or before 31 March 2021
• join the VAT deferral new payment scheme – the service is open between 23 February and 21 June 2021
• contact Isle of Man Customs & Excise (IOMCE), Debt Management Unit (DMU) on 648160 or email dmu.customs@gov.im by 30 June if you will need extra help to pay

You may be charged interest or a penalty if you do not:

• pay the deferred VAT in full by 31 March 2021
• opt into the new payment scheme by 21 June 2021
• agree extra help to pay with IOMCE by 30 June 2021

1. I would like to pay my deferred VAT by 31 March 2021

If you want to pay your deferred VAT in full by 31 March 2021 you can pay using the below methods.

You can pay by debit or credit card using Government Online Services. Please login to www.gov.im/onlineservices and select ‘Customs & Excise’ followed by the ‘General Payments’ option and pay using your debit or credit card.

You will need to be registered for online services to make a payment, guidance on how to register can be found at Registering for Online Services.

Alternatively you can also make payment electronically into our bank account via BACS, CHAPS or Faster Payments.

To obtain our bank account details please contact us on +44 1624 648100 or email customs@gov.im

Please quote your VAT registration number and period on all payment methods so we can allocate your payment to your account promptly.

2. How do I join the new payment scheme?

IOM traders must apply in writing to Isle of Man Customs & Excise, PO Box 6, Custom House, North Quay, Douglas, Isle of Man, IM99 1AG, or by email to dmu.customs@gov.im

The VAT deferral new payment scheme will be open from 23 February up to and including 21 June 2021.

The new payment scheme lets you:

• pay your deferred VAT in equal instalments, interest free
• choose the number of instalments, from 2 to 11 (depending on when you join)

To use the service, you must:

• join the scheme yourself, your agent cannot do this for you
• still have deferred VAT to pay
• be up to date with your VAT returns
• join by 21 June 2021
• be able to pay the first instalment when you join
• pay your instalments by Standing Order quoting your VAT registration number and the VAT Deferment period as the reference

If you join the scheme, you can still apply for a Time to Pay arrangement for other IOMCE debts and outstanding tax.

3. What instalment options are available to me?

The month you decide to join the scheme will determine the maximum number of instalments that are available to you. If you join the scheme in March, you’ll be able to pay your deferred VAT in 11 instalments or fewer.

The table below sets out the monthly joining deadlines and the corresponding number of maximum instalments (including the first payment):

If you join by:	Number of instalments available to you:
19 March 2021	11
21 April 2021	10
19 May 2021	9
21 June 2021	8

4. What must I do before joining the scheme?

Before joining, you must:

• submit any outstanding VAT returns from the last 4 years – otherwise you’ll not be able to join the scheme
• correct any errors on your deferred VAT returns as soon as possible
• make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid

5. How do I correct errors on VAT returns for the VAT deferral period?

The VAT deferral period covered accounting periods for:

• February 2020
• March 2020
• April 2020
• May 2020 - for ‘payment on account’ customers and certain non-standard tax periods only, in addition to the above periods

If you notice an error on a VAT return which relates to a period covered by the scheme, you should:

1. Fill in form VAT 652 MAN
2. Send the completed form to Isle of Man Customs & Excise, PO Box 6, Custom House, North Quay, Douglas, Isle of Man, IM99 1AG.

6. Can I defer extra payments resulting from error corrections?

If you want to defer extra payments resulting from error corrections, contact IOMCE DMU on +44 1624 648160 or email dmu.customs@gov.im after both of the following have happened:

• IOMCE have processed your error correction
• you’ve received a statement of account confirming the balance

You can then either:

• include the payments in your deferred balance and pay in full by 31 March 2021
• include the payments in your deferred balance and join the new payment scheme while it is open
• contact IOMCE DMU on +44 1624 648160 or email dmu.customs@gov.im

You cannot include extra payments after you’ve joined the scheme. Any error correction relating to the deferral period that is notified to IOMCE after 31 March 2021 cannot be deferred.

You may be contacted by IOMCE if we’ve carried out a VAT compliance check and found that extra payments are due for the deferral period. You must also contact IOMCE DMU on +44 1624 648160 or email dmu.customs@gov.im if you want to defer these payments.

7. What if I am not able to pay my deferred VAT?

If you’re still unable to pay and need more time contact IOMCE DMU on +44 1624 648160 or email dmu.customs@gov.im  as soon as possible.

8. What if I am due a repayment of VAT but have not fully paid my deferred VAT account?

IOM traders who have joined the VAT deferral new payment scheme are entitled to VAT repayments (in respect of current returns) but will need to contact IOMCE DMU on +44 1624 648160 or email dmu.customs@gov.im to request such a repayment.

You also have the option to offset the repayment due against the deferred amount and if you do not contact us to request repayment our accounting system will offset the repayment due against the deferred amount automatically.

Repayments will be offset against existing debts for accounting periods not covered by the VAT deferral new payment scheme. This means that the repayment will be used to offset any existing debt that relates to a pre or post COVID deferment period.

Value Added Tax: Guidance on the temporary reduced rate of VAT for hospitality, holiday accommodation and attractions

Further information on the temporary reduced rate of 5% VAT for the hospitality industry, holiday accommodation and on admission charges to attractions announced yesterday has now been released.

A reduced rate of 5% for holiday accommodation already exists in the Isle of Man.

Details of the measures can be found in the following publications or by contacting the Advice Centre on 648130 or at customs@gov.im :

Revenue and Customs Brief 10 (2020): temporary reduced rate of VAT for hospitality, holiday accommodation and attractions.

VAT on admission charges to attractions

VAT Notice 709/1: Catering, takeaway food

VAT Notice 701/14: Food Products

Detailed guidance on sanctions, export and trade control licensing, and proliferation

The Customs and Excise Division publishes detailed guidance about how UN and EU trade and financial sanctions affect the Island, as well as on export controls (including on the export of cultural goods), trade control licensing of trafficking and brokering activities, trade-based money laundering, proliferation and proliferation financing.

Imported vehicles

When vehicles are imported from outside the UK and Isle of Man, Customs and Excise must be satisfied that any VAT etc is secured before it can be registered and licensed for use on the road.  More details can be found in Notice NOVA 3 MAN (guide to procedures), which can be found in the section containing Public Notices.

Alcohol Wholesaler Registration Scheme (AWRS)

From April 2017, trade buyers who purchase alcohol from wholesalers with the aim of selling it on to their own customers should, as part of their own due diligence processes, check that the wholesaler is registered with the Isle of Man Treasury or HMRC, to ensure that the wholesaler they are purchasing from has been approved.  Since 1 April 2016, alcohol wholesalers have been required to be registered.  For more details see Notice 2001 MAN in the section containing Public Notices.

Machine Games Duty

Machine Games Duty came into force on the Isle of Man on 1 February 2013.