Isle of Man VAT-Registered Companies
We create a special package deal for our client wishing to conduct business in the European Union. We are pleased to introduce you with our "IOM VAT Registered Co." package and hope to establish a long and prosperous relationship with you. The purpose of this structure is to provide a cost-effective structure for your import/export business needs, which www.Finor-Group.com will administer it.
It is always a must to set up such a specific structure preferably in the Isle of Man despite this is definitely not a cheap scenario due to the complexity of European tax matters and the requirements for our IOM-based Registered Agent to maintain the books in good standing as well as to fill in and submit the quarterly VAT returns to the Tax Authorities. Therefore here are all necessary information and current schedule of fees for your review:
VAT MATTERS
VAT is not like any other tax. It is a tax on the consumer, not the producer. The producers collect the tax, but it is not a tax on them. In addition, it is a tax applied at the final point of sale, although collected through the chain of supply. Thus where goods or services are supplied is the key question. Where the supplier is resident is of supreme unimportance.
In order for a company to be able to register in the Isle of Man for Value Added Tax purposes, it MUST be making taxable supplies from the Isle of Man of not less than £50,000 per annum.
It must also have (in fact it is difficult to see how it can function without having it) a real presence and be carrying on business and making real taxable supplies from the Isle of Man. That means that if it is a non-Manx company, it must register here as a foreign company carrying on business here.
It will be liable to Isle of Man direct taxation (18% on profits) unless it obtains exempt status. To achieve that, it must be owned outside the Isle of Man and all its income must be foreign source income, i.e. its sales must all be outside the Isle of Man.
It must have a local director, and have a local secretary who is either professionally qualified or officially approved. Because the Isle of Man VAT authorities need access to its accounts, it must have accounts readily available in the Isle of Man and that means, in practice, that accounting must be done here.
In practice, all VAT formalities will be dealt with by our IOM Registered Agent. He is fully experienced in this type of work, and handle export/import structures for many clients. However our IOM Registered Agent is not in the business of mass producing companies for use in tax evasion situations. www.Finor-Group.com deals
only with specifically designed structures, where they are being entirely legally owned for proper import/export business purposes, and we would always need to do full Due Diligence on all companies that we are providing services to, and on Beneficial Owners and managers.
THE ISLE OF MAN EXCEPTION:
The Isle of Man is uniquely situated for the provision of commercial and trade services. By virtue of being in Customs Union with the United Kingdom, it is treated as being a part of the United Kingdom for all Customs and Excise, and Value Added Tax purposes, and, in consequence, is fully a part of the European Union for all such purposes.
Notwithstanding that, the Isle of Man is not a part of the European Union, and has no obligation to follow European Union Directives, or to harmonies with European Union procedures. This enables trading companies carrying on business in the Isle of Man in appropriate circumstances to be treated as full European Union trading entities, registered for Value Added Tax, while being entirely exempt from all direct taxation in the Isle of Man. In fact the Isle of Man enjoys a unique status relative to the European Union. While it is not a part of the EU as such, being an associate under the terms of Protocol 3 of the Treaty of Accession of the United Kingdom, it is treated for all purposes of Customs and Excise duties, and Value Added Tax as being a full member. This is because the Isle of Man is in Customs Union with the United Kingdom and imposes an almost identical system of Customs and Excise duties, and of Value Added Tax. This means that, uniquely in Europe, a Company, no matter where incorporated, may be resident and trading, and making VAT taxable supplies from the Isle of Man with complete exemption from all Isle of Man direct taxation.
SERVICES CURRENTLY AVAILABLE FROM OUR IOM OFFICES:
We can provide a full accounting service, including Registration, and quarterly reporting for Value Added Tax. The Isle of Man is in Customs Union with the United Kingdom and maintains a VAT and indirect taxation regime which is nearly identical to that of the United Kingdom. As a consequence, the Isle of Man is treated as being wholly within the European Union for all purposes of tariffs and trade.
We can also provide a similar service in respect of trading entities resident in the Republic of Ireland.
The location for registration for Value Added Tax (VAT) is generally determined by the location from which taxable supplies are being made. Where a company is making taxable supplies from the Isle of Man, it must be registered in the Isle of Man, and for UK purposes, this counts as a UK registration.
With special regards to import/export companies, we have extensive expertise in structuring import/export arrangements, and in processing documentation and obtaining Customs clearance for imports into and exports from the European Union. Value Added Tax issues are also important. We can provide a full administration service, for importing into and exporting from the European Union. We can arrange for the appointment of clearance agents, and the registration of items for Customs Duty purposes, ensuring the most favorable treatment. We can process all the necessary documentation including invoices, certificates of origin etc., and bills of exchange and bank documentation where appropriate.
We are able to provide Registered Office facilities in the Isle of Man. In respect of other jurisdictions, we are able to arrange for appropriate Registered Office services to be made available.
We have staff who are fully professionally qualified to act as Company Secretary of all Companies both Public and Private in the United Kingdom, and the Isle of Man, and of other jurisdictions whose company law is based on that of England & Wales.
We are able to provide a full Nominee service.
SCHEDULE OF FEES AND CHARGES:
Currency: All fees and invoices are expressed in Sterling Pounds, the legal currency of the Isle of Man.
Notwithstanding any conversion into US dollars or Euros for convenience, the amount legally due is the amount expressed in Sterling Pounds. Payment of invoices in US Dollars where there is a conversion into US Dollars for convenience, is welcome. In exactly the same way, payment of invoices in Euros, where there is a conversion into Euros for convenience, is welcome. Currency conversions from Sterling Pounds into US Dollars or Euros are for convenience only and should not be taken as definitive.
Product Charges relate to a specific item with a predetermined charge, such as the formation of a company, or the settlement of a trust. Details of these charges are found as follows. The Fee is charged at the time of 'sale'.
Fixed Annual Charges relate to the provision of specific services, such as acting as a Company Director, Secretary or other office, or providing the Registered Office or a Domicile. Acting as a Trustee, or as a Protector or Appointer to a Trust also attracts a fixed Annual Charge. Fees are charged once a year in advance.
Time Charges are applied for services provided where there is an ongoing time requirement. The amount of the time charges is relative to the complexity of the work done. These fees are charged quarterly in arrears, or more frequently, if the amount warrants, or, if the work is ceasing, upon termination of the work.
Special Charges are agreed by negotiation, and are applied for special one-off services of an unusual or non-repetitive character.
General
Third party fees are charged at cost.In the context of new business, the first hour of discussion and one initial piece of correspondence will be free of charge. Thereafter, normal charges will be applied.
A Deposit may be required before any work is undertaken.
Any increase in Fee levels or other changes in terms of service will be notified in writing not less than one calendar month before they come into effect.
VAT REGISTRATION SERVICES
Due to the complex nature of this subject, we recommend that you contact us to discuss your situation/goals and obtain a quotation according to these circumstances. A deposit of £750.00 is usually required against our fees to cover the costs of completing the initial registration, forms, agents services and Government fees and the subsequent invoice will be raised to cover the balance of our fees and quarterly returns filling work.
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