Global Daily Tax News, Manx Value-Added Tax Amendments Effective, (Dec 16, 2024)

The Isle of Man Government has confirmed amendments in the Value Added Tax Act 1996 (Amendment) Order 2024 have become effective.

The Order makes changes to the DIY housebuilders scheme. The Order inserts a new power into Section 35 of the Value Added Tax Act 1996 that gives the Treasury a clear power to request further evidence from a person who has submitted a DIY housebuilder's claim on or after May 24, 2024. In cases where the documents are not produced as required, the Treasury may refuse to refund the amount of VAT (or any part of it) in respect of which the claim was made.

Two minor changes have been made to provisions governing the interaction between late payment interest and repayment interest for VAT. The changes ensure that provisions concerning the recovery of repayment interest and the "common period rules" operate as intended. The amendments are effective retroactively from January 1, 2023.

Finally, the Order provides that the zero rate of VAT may apply to supplies of caravans manufactured to meet the requirements of the 2023 version of British Standard 3632, as well as previous versions of the standard and any future standards issued by the BSI in the future.