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VAT on private jets and yachts imported into the Isle of Man

10 March 2020 / Sam Brodsky
Issue: 4735 / Categories: Comment & Analysis
Plane sailing

Key points

  • The ‘paradise papers’ shed light on the import of aircraft and yachts to the Isle of Man.
  • In most instances the law of VAT in the Isle of Man mirrors that in the UK.
  • The supply of specific aircraft and ships for international transport is exempt from VAT.
  • Generally from 1 January 2011 VAT will be payable by an individual importing a plane or yacht.
  • A credit for input tax paid can be obtained if this is attributable to taxable supplies in the course of a business.
  • Leasing structures may be abusive if the only customer is the person who funded the purchase or others connected with that individual.
  • There may be an increased focus on whether leasing structures...

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