VIOM02100 - General: imports, exports and removals

Within the common tax area of the UK and the IOM a registered business accounts for VAT in the country in which it is registered.

For example, an IOM business, making taxable supplies in the UK accounts for the VAT in the IOM. If the business imports goods into the common tax area, the import VAT can be paid or deferred and reclaimed as input tax in the IOM subject to the normal rules for input tax deduction.

Movements of goods from the UK to the IOM and vice versa are not normally treated as exports or imports provided, for goods removed from the IOM to the UK, that:

• any VAT due has been accounted for in the IOM, or
• if the goods are relieved of VAT in the IOM, the conditions of that relief have not been broken.