Manx businesses sent compulsory VAT survey

The VAT survey is compulsory for businesses on the Isle of Man

About 2,500 businesses on the Isle of Man are being issued with a compulsory survey to measure national VAT data.

It calculates the share of indirect tax revenues the island receives from the UK under the Final Expenditure Revenue Sharing Arrangement (Fersa).

The Manx government has sent the survey to a selection of companies, ranging from sole traders to large employers.

Those that receive the questionnaire have four weeks to complete it.

Other businesses invited to take part could include buy to let landlords, sports clubs, and charities.

A government spokeswoman said the amount of revenue the island currently receives by way of Fersa made up almost a third of the island’s income.

'Health, education, policing'

She said the Business Income and Expenditure Survey asked about the "irrecoverable VAT" firms have incurred on their expenditure.

If that is not known an estimate would be made based on further information, she added.

The survey outlines that the data would "help to ensure that the island receives its full share of VAT and other duties".

It secured "money that is needed to fund health, education, policing and all other services on which we rely".

Fersa requires the government to measure irrecoverable VAT incurred at least every five years.

It follows a Household Income and Expenditure survey launched last year, which comes to an end this month.

The data would be collected by Statistics Isle of Man and deleted after the calculations have been completed, the government spokeswoman said.