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VAT Rates in the Isle of Man

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.

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