Does my Isle of Man company need to register for VAT ?

When an Isle of Man company’s business is a continuing activity that involves getting paid for providing goods or services (in money or another kind of form) then it may need to register for VAT.

Guidance as to what constitutes a ‘continuing activity’ is provided for by Isle of Man Customs and Excise and includes activities that have a degree of frequency and scale and are provided over a period of time.

If your company is such a company then it may choose to register for VAT voluntarily, regardless of the total value of taxable supplies that it has made in the preceding 12 months.

However where the total value of taxable supplies exceeds a certain amount it then must register for VAT. From 1 April 2017 the amount is £85,000. Therefore if at the end of any month the total value of your taxable supplies made in the preceding 12 months (on a rolling 12 month basis) exceeds £85,000 then your company must register for VAT. Also if you expect that the value of your taxable supplies in the following 30 days will take you over this threshold of £85,000 then your company must register for VAT.