International trade and the Isle of Man requirements and standards

The Isle of Man, by virtue of its unique Customs and Excise Agreement with the United Kingdom, is treated as part of the UK for Customs, Excise and Value Added Tax (VAT) purposes.

The UK operates a system of customs duties and regimes whereby non UK goods arriving at a UK port must clear Customs and any duties or taxes that are due is paid. Businesses have to arrange for the declarations and payments to be made whilst Customs authorities formally clear the goods from Customs control into 'free circulation', for delivery and trade within the UK and IOM. Alternatively, with the approval of the appropriate Customs authorities, goods may be entered, held or processed under a variety of duty or tax suspension regimes.

Postponed VAT Accounting (PVAT) is available for use by Isle of Man VAT Registered traders. Accounting for import VAT on your VAT Return may have cash flow benefits to your business.

Rather than paying VAT on goods at the border and reclaiming it on your VAT return, the scheme allows you to 'postpone' the import VAT. You don′t need to make a physical payment for the goods at the UK border. Instead, you′ll account for the import VAT and recover it on the same VAT return.

Check when you can account for import VAT on your VAT Return.