VAT reductions for food and attractions

The VAT rate for food and attractions on Island will be reduced to 5% from next week.

Government has confirmed the new rate will come into effect from next Wednesday (July 15) until Tuesday, January 12, 2021.

The move is aimed at stimulating business in the Manx hospitality sector - the 5% rate already applies to accommodation on the Isle of Man.

It comes after announcements made by UK Chancellor the Exchequer, Rishi Sunak this afternoon and is in line with the Customs and Excise Agreement with the UK.

Officials add further details on what the VAT reduction will apply to will be issued in due course.