Increase of Interest Rates on Late Payment and Repayment

The interest rates applicable in the Isle of Man on late payments and repayments of VAT (and some other taxes) were increased to 7.5% and 4%, respectively, from 11 July 2023.

Following that change, and because of the agreement in place with the United Kingdom to keep the management and administration of indirect taxes aligned, these interest rates have been increased again to 7.75% and 4.25%, respectively, with effect from 22 August 2023, following the increase of the base rate by the Bank of England at the beginning of August.

Introduction of Electronic VAT Registration, Filings, and Adjustments

As from 1 January 2024, VAT registration, filings, and adjustments will be required to be carried out by electronic means. A transitional period of one year (i.e., until 1 January 2025) will be in place to allow taxpayers to prepare in accordance.