VAT

This is the Value Added Tax (VAT) page, home to information and all of the relevant forms, guidance, legislation and public notices relating to VAT in the Isle of Man.

Online Services

The Customs and Immigration Online Services provide a convenient and secure area for you to access the VAT Online Portal, where registered taxpayers can file a VAT return and make payments.

What is VAT

Value Added Tax (VAT) is a consumption tax charged on goods and services. Ultimately, it is the final consumers that pay VAT; however, the VAT system is designed so that VAT registered businesses collect and account for the tax and pass the tax collected to the Customs and Immigration Division of the Treasury.

VAT is a tax added to most products and services sold by VAT registered businesses. You cannot charge VAT if you are not VAT registered.

VAT rates for goods and services

The supply of goods and services that are subject to the standard rate, reduced rate or zero rate of VAT are known as 'taxable supplies'.

Some things are exempt from VAT such as health services, financial services, property transactions and postage stamps. These are known as 'exempt supplies'. If you only make exempt supplies you cannot register for VAT.

The VAT rate businesses charge depends on what the goods and services are and where they are being supplied.

Find out more about how to charge VAT and how to calculate prices with and without VAT:

Find out more about the different rates of VAT and when they apply:

Place of supply of services

Find out how to determine the place of supply of your services and how to deal with supplies of services which you receive from outside the UK/Isle of Man:

Check an IOM/UK VAT Number

Use this service to check:

• If an IOM or UK VAT registration number is valid
• The name and address of the business the number is registered to

VAT Notices and Guidance

The guidance held in most public notices published by His Majesty's Revenue and Customs (HMRC) is also relevant for Isle of Man VAT registered traders:

Some rates of VAT that apply in the Isle of Man are different to the rate charged in the UK. Further information can be found in these notices:

VAT Claims for when you are not VAT registered

Use this form to claim back VAT if you're exempt from registering for VAT as a local authority, academy, public body or eligible charity.

Fuel scale charges

If you use a motor car in your business and claim back VAT on the road fuel then you must consider whether to pay scale charges or not. These charges are to cover any private use of the fuel bought. Please note, getting to and from work in the vehicle is considered to be private and not business.

By paying the scale charge you can recover all of the VAT on the road fuel, both business and private. You have the option not to pay the scale charge but if you do so then you cannot recover any VAT on fuel for any cars that are used by your business for business and private use.

How to account for VAT on vehicles and fuel you use for your business:

Search for fuel consumption, CO2 emissions, and tax bands for new and used cars:

Find road fuel charges you can add to your VAT return to account for private consumption of fuel on a business vehicle:

Legislation

The Value Added Tax Act 1996 can be found on Isle of Man's legislation website where you can also find relevant secondary legislation (i.e. Orders and Regulations).

Further Information

If you require further guidance, you should refer to the VAT Notices in the relevant areas of this section or contact us:

Email: customs@gov.im

Telephone: +44 1624 648100

Please note: Customs and Immigration can only give general VAT advice to Isle of Man residents and businesses.

If you are VAT registered in the United Kingdom, please contact their Business Advice Centre on 0300 200 3700.

Public Counter Hours

Monday to Friday: 10am to 2pm

You are encouraged to make appointments before visiting and they can also be arranged outside of counter opening hours on request.

The counter may occasionally be closed for staff training or operational matters. Notifications will be put up giving sufficient notice.