Registering for VAT

If you are in business and you are making taxable supplies, you must consider whether you have a liability to register for VAT. You may be charged a penalty if you do not apply to register at the correct time.

You are required to register for VAT if:

• At the end of any month the total value of your taxable supplies you have made in the preceding 12 months, on a rolling 12-month basis, exceeds £90,000 or
  
  
• At any time you expect that the value of your taxable supplies in the next 30 days period alone will be more than £90,000 or
  
  
• If your VAT registered business changes legal status e.g. from sole proprietor to Limited Company or
  
  
• You take over a VAT registered business as a going concern or
  
  
• You take a new lease for commercial premises where you continue the same, or similar, kind of business as a previous VAT registered tenant, without a significant gap in trading

For further guidance please see:

If you are required to be registered for VAT in the Isle of Man or are making taxable supplies below the VAT threshold and would like to register voluntarily, please see the 'How to register for VAT' section below.

Accounting for VAT while you wait for your VAT number

You cannot include VAT on your invoices until you get your VAT number, but you can increase your prices to account for the VAT you will need to pay to Customs and Immigration.

You can register for VAT:

• Online, using gov.im online services or
• By completing the registration form (VAT 1 MAN) and sending to the VAT registration team

Registering online

Most businesses can now apply for VAT registration online. Please log in to the gov.im online services to begin the process, using the guidance to help you.

Please note: VAT groups and partnerships cannot register for VAT online and must use the VAT registration form.

VAT registration form

The registration forms are designed to be completed electronically and submitted via email to:

Email: registration.customs@gov.im

We aim to process applications within 10 working days. To avoid delays, please ensure your application includes all required supporting evidence (see the additional guidance and forms below).

Turnover Sheet

You must submit this form, with a VAT application form, if your business has made ‘taxable’ supplies before you send us the application form. This will assist us in determining whether you have exceeded the VAT threshold and from what date you may be required to be registered from.

Land and Property

For the option to tax and property questionnaire forms related to land and property visit the following page:

Aircraft and Yachts Questionnaires

For further guidance please see:

Digital Service Company and IP Questionnaire

You must complete this questionnaire if your business makes, or intends to make, taxable supplies as a digital service company or an IP (intellectual property) business, including where this relates to gambling activities.

Overseas businesses

In most cases businesses who belong outside the Isle of Man ['IOM'] and UK, who are required to VAT register in the IOM/UK should contact HMRC’s non-established taxable persons unit.

Appoint a Tax Representative

In cases where it would be more appropriate for an overseas business to VAT register in the Isle of Man, you may be required to appoint a Tax Representative.

Note that this form declares that both parties are jointly and severally liable for any debts incurred in respect of the VAT registration.

Note: This is not an online VAT Agent form.

To appoint a VAT Agent to authorise them to complete VAT returns on your behalf:

You remain responsible for accounting for the right VAT at the right time but have authorised an Agent to submit returns on your behalf.

VAT Group Registrations

VAT grouping is a facilitation measure by which 2 or more eligible persons can be treated as a single taxable person for VAT purposes. Eligible persons are corporate bodies, individuals and partnerships, provided that certain conditions are met.

For further guidance please see:

How to apply for VAT Group registration

New VAT Group: Complete one VAT 1 MAN in the name of the representative member.

New VAT Group and VAT Group changes: Complete one VAT 50 MAN in the name of the representative member and a VAT 51 MAN for each member you want to add or remove.

VAT Special Schemes

Flat Rate Scheme

For further guidance please see:

Annual Accounting Scheme

For further guidance please see:

Cash Accounting

The cash accounting scheme allows you to account for VAT (output tax) on your sales based on payments you receive, rather than on VAT invoices you issue. This is different from the normal rules where you must account for VAT on your sales when you issue a VAT invoice, even if your customer has not paid you.

You do not have to apply to use the cash accounting scheme, but there are eligibility rules and requirements of using the scheme. Please see:

Charities

Find out more about what counts as a business activity, how VAT affects charities, how to treat a charity's income for VAT and what VAT reliefs a charity can get on what it buys:

Further Information

Contact VAT the registration team:

Email: registration.customs@gov.im

Telephone: +44 1624 648120

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

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