Chesterfield (London) 
207 Old Marylebone Road
Tel: +44 (0) 203 771 3853
Fax: +44 (0) 203 771 3856

Isle of Man VAT

Although the Isle of Man is not a member of the EU it has the distinct advantage of being part of the customs territory of the EU under Protocol 3.

A company can register for VAT in the Isle of Man if it maintains a place of business in the Isle of Man. It is therefore possible for Isle of Man and foreign companies to take advantage of the Isle of Man 0% corporate tax rate whilst obtaining the benefits of VAT registration for trade in the EU.

Although the Isle of Man is not part of the UK following the 1979 Customs and Excise Agreement it is treated as part of the UK for VAT purposes. This means that imports and exports between the Isle of Man and the UK are not treated as such. VAT law in the Isle of Man generally mirrors that of the UK and is administered by the Isle of Man Customs and Excise.

The standard rate of VAT increased from 17.5% to 20% on the 4 January 2011 which applies to most goods and services. There are also reduced rates of 5% and zero rates which usually benefits when buying for children or home energy and food.

VAT Registration is compulsory in the Isle of Man for businesses whose taxable turnover exceeds £77,000. This is the highest VAT registration threshold in the world. Businesses that do not exceed this threshold may choose whether or not to register.

The VAT aspects of transactions and other transactions involving EU countries are becoming more and more complex. Anyone not familiar with the rules should seek specialized VAT advice and guidance. Chesterfield have employees who are expert in the field of VAT.

Our VAT Services include;
- Registration or de-registration
- Completion and submission of VAT returns
- Preparation and submission or recapitulative statement (EC Sales Lists)
- VAT advice
- Liaising with VAT authorities with regards to enquiries

If you would like further information on VAT in the Isle of Man or any other location please follow the link below or call us on our offices
Telephone Number: 44 20 7097 1385
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