16/07/2021
As at the 30 June 2021 the majority of VAT registered traders who deferred paying their VAT in 2020 have now either paid or agreed a Time to Pay plan with the Isle of Man Treasury. There are still a small number of taxpayers who despite reminders have chosen not to engage with the Treasury to agree a way forward to meet their VAT liabilities, and from the 1 July 2021 these outstanding liabilities are considered debts and collection activity will commence to collect these outstanding monies. A new penalty of 5% of the outstanding liability is being introduced specifically to deal with VAT registered traders who have not paid deferred VAT or agreed a Time to Pay plan.
The Treasury encourages anyone who is yet to pay the deferred VAT or make arrangements to pay to do so as soon as possible.