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HMRC internal manual

VAT Isle of Man

Assurance: businesses with establishments in both the UK and IOM

The registration criteria for UK or IOM businesses having establishments in both countries are set out in the VAT Registration Manual. In essence, the VAT registration should be located in the jurisdiction where most of the business’ supplies are made, or will be made, and consequently where the business can be most effectively controlled. Normally the position will be clear and mutually agreed by the two authorities. However, if for any reason this is not the case, the Commissioners of HMRC will decide on the jurisdiction.

When visiting a business with establishments in both jurisdictions you must satisfy yourself that the business is registered in the correct country.

Apply the provisions of the VAT Registration Manual as far as is practicable and if you are responsible for a UK Head Office send requests for branch or group member visits in the IOM to Isle of Man Customs & Excise. In the reverse situation you may also receive visit requests from Isle of Man Customs & Excise.

The normal rules for the place of production of records apply to UK registered business and the fact that a UK business may have an establishment in the IOM in no way affects the position. Offers to produce records in the IOM must be refused as unreasonable.

If you visit UK establishments of IOM registered businesses at the request of Isle of Man Customs & Excise, you must report to the Tax Administration Litigation & Advice team any difficulties concerning the production of records which cannot be resolved by reference to the Isle of Man Customs & Excise.