VAT group that includes UK company with an Isle of Man company

[Shaw]

Hi everyone. At first sorry for my horrible question which may not be relevent to many forum users here.

I am based in UK but also has some business in Isle of Man. I understand the Isle of Man is not part of the UK, but following the 1979 Customs and Excise Agreement, it is treated as part of the UK for VAT purposes. So my question is, can i have a VAT group which comprise both UK entities and Isle of Man entities.

I cant find relevent information on either HMRC or Isle of Man government site.

Any help will be greatly appreciated.

[vatconsultant]

The general rules for companies in VAT groups are that:
– the entities involved are body corporates, under “common control”
– the entities must be “established” or have a “place of establishment” in the UK

Note as you pointed out, and for the purposes of Group VAT regisration Isle of Man is treated as part of the UK and hence the mix of Isle of Man and UK is not an issue.

This is worth a read if you are considering a group vat registration: https://www.gov.uk/government/publications/vat-notice-7002-group-and-divisional-registration/vat-notice-7002-group-and-divisional-registration–2

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