Isle of Man

Produced by Tolley
Isle of Man

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Isle of Man
  • Overview of the IOM tax system
  • S33 bodies
  • Registration
  • Registration / deregistration
  • Online submissions and forms
  • Group and divisional registrations
  • IOM correspondence address
  • Isle of Man charities
  • Cross border trade
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

This guidance note provides an overview of how VAT is applied in the Isle of Man (IOM) and what impact this has on businesses established in the IOM and the UK.

Overview of the IOM tax system

The IOM is not part of the UK and the common tax areas between the two countries are the result of agreements entered into between the UK and the IOM governments.

UK VAT law is not applicable in the IOM and VAT is chargeable under Manx law which is generally similar to UK legislation.

VAT is collected in the IOM under the Value Added Tax Act 1996 (of Tynwald).

On 1 April 1980 the IOM formed its own Customs and Excise Service and responsibility for collecting VAT was transferred to the IOM. IOM Customs and Excise Service is accountable to the Treasury of the IOM Government.

The administrative arrangements between the UK and the IOM are contained in the Customs and Excise Agreement 1979 (as amended).

In the UK the Agreement was implemented by the Isle of Man Act 1979 and Section 6 of the Act which pertains to VAT is reproduced in VIOM05000.

There are also other common shared duties between the IOM and UK relating to hydrocarbon oils, excise duty on alcohol and tobacco goods. However other duties and taxes, such as air passenger duty, machine gaming duty, climate change levy, insurance premium tax and aggregates levy have not been implemented in the IOM.

HMRC will not take any enforcement action against a business if their only

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