- Minor legislative changes to VAT Act and Regulations are now in effect
- Changes include increased late payment penalties and extended final VAT return deadline
- Aligns Isle of Man VAT rules with those of the United Kingdom
- New late payment penalties effective from 31 July 2025 for periods starting on or after 1 June 2025
- Penalty of 3 percent applies if VAT is unpaid within 15 days of due date
- Additional 3 percent penalty if VAT remains unpaid at 30 days
- Unpaid VAT after 30 days incurs a 10 percent penalty
- Extended deadline for final VAT returns from 1 July 2025 for businesses de-registering for VAT
- Treasury can extend deadlines due to processing delays or compliance issues
- Taxpayers can request a Time to Pay plan to pay VAT in instalments
- Penalties may be avoided or reduced with a Time to Pay arrangement
- Taxpayers have a right of appeal and may avoid penalties with a reasonable excuse
Source: gov.im
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
