Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 20% | 5% |
There are basically 2 VAT rates in the Isle of Man:
- Standard VAT rate is 20%
- Reduced VAT rate is 5%
Recent developments
For more information about (recent) rate change developments in the Isle of Man, please click here.
Standard rate: 20%
This rate applies for all transactions that take place in the Isle of Man, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Reduced rate: 5%
- Fuel and power supplied to domestic users and charities
- Energy-saving materials
- Building materials for residential conversions
- Sanitary protection products
- Children’s car seats
- Domestic property repairs
- Holiday accommodation
Zero rate (0%)
Examples of goods and services taxable at 0%
- Books, newspapers and periodicals (from 1 May 2020, this also applies to digital formats of these publication)
- Certain foodstuffs
- Children’s clothing and footwear
- Drugs and medicines supplied on prescription
- New housing
- Transport services
- Passenger transport (including yachts)
- Exports of goods and related services
Examples of exempt supplies of goods and services (not liable to VAT, no input VAT deduction)
- Betting and gaming
- Education
- Finance
- Insurance
- Land and buildings (in most cases)
- Public postal services
- Human blood products
- Medical services
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on May 26, 2021.
