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Isle of Man

Customs & Excise

The Isle of Man has a "Common Purse" Customs arrangement with the UK and, since rates of VAT and Excise Duties are, by agreement, levied at the same rates as the UK, there are no Customs formalities when travelling to and from the Island to the UK. The Island has access to the EU for its goods and services through Protocol Three of the Act of Accession.

This creates the situation where the Island is able to have VAT registered companies that do not pay any taxes on profits. This provides and excellent base for companies that wish to trade with and within the EU but want to take advantage of the very significant cash flow benefits that can accrue from having a VAT registered Isle of Man subsidiary.

VAT and Excise Duties provide the largest sector of Government revenue, which assists the Government in maintaining low rates of direct taxation and the absence of any capital taxes.