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VAT

The Isle of Man and the United Kingdom are considered one area for VAT purposes, and VAT is levied in the Isle of Man at the standard UK rate (17.5%). The Customs and Excise Division in the Isle of Man operates independently from the United Kingdom, but under similar legislation.

Advantages of IoM

The Isle of Man is the only offshore financial centre that allows low tax rate or tax exempt companies to operate within the European Union indirect tax, Value Added Tax (VAT) system and trade freely within the European Union.

Find out more at: Isle of Man Advantages

Specific Advantages

The IoM offers many specific advantages in respect of VAT registration including:

Our Services

The services include; planning and compliance support with investigation and advice to help businesses from possible indirect taxation problems.

An important issue for VAT registered businesses is to have a regular VAT review. The department is able to provide regular or detailed reviews for clients of Ernst & Young.

VAT Triangulation

Many international businesses use various offshore locations as part of taxation planning.Invoicing activities, for example, may be carried out from locations such as the Isle of Man, Channel Islands, Gibraltar. The problem with using most offshore jurisdictions is that they will find it difficult to obtain VAT registrations for their companies without jeopardising offshore tax advantages. The Isle of Man is unique in this respect in that it can offer effective taxation planning and VAT registration.

Find out more at: VAT Triangulation

Tax

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