Isle of Man VAT (2025)

VAT Agreement with the UK:

• The Isle of Man has a customs and VAT agreement with the United Kingdom.
• This agreement means that Isle of Man VAT rules and rates are aligned with those of the UK.

VAT Rates:

• The standard VAT rate is 20%.
• Reduced VAT rates of 5% apply to specific goods and services.
• Zero-rated goods and services also exist.

VAT Registration:

• Businesses making taxable supplies in the Isle of Man are required to register for VAT if their turnover exceeds the registration threshold.
• The VAT registration threshold from 1 April 2024 is £90,000.
• Foreign businesses making taxable supplies in the Isle of Man may also be required to register.

VAT Returns:

• VAT returns are filed periodically, typically quarterly.
• Electronic filing is generally required.

Intra-Community Transactions:

• As the Isle of Man is within the UK's VAT territory, transactions with other EU member states are treated as imports/exports.
• The Isle of Man follows the UK's rules regarding transactions with the EU.

Imports and Exports:

• Imports into the Isle of Man are subject to VAT.
• Exports to countries outside the UK are generally zero-rated.

VAT Refunds:

• Foreign businesses may be eligible for VAT refunds under specific conditions.
• Refund procedures are aligned with UK VAT legislation.

Digital Services:

• The Isle of Man follows UK VAT rules regarding the supply of digital services.