Isle of Man introduces MGD at 15%

27/11/2012

The Isle of Man government has announced that businesses must now register for the payment of MGD, which has been introduced following the change to the UK tax regime. Historically, the Isle of Man has targeted a broadly-equivalent VAT regime to the United Kingdom on account of a long-standing revenue-sharing agreement between the two territories. The Isle of Man has however decided to operate a single-duty 15%-rate regime, as opposed to the dual-rate regime to be introduced in the United Kingdom, with rates of 5% and 20%.

Businesses or individuals who have been approved to operate such a machine by the Gambling Supervision Commission must register with the island’s Customs and Excise department, from December 1, 2012, but no later than February 1, 2013.

The removal of VAT from the takings of gaming machines will bring the two regimes in line with European Union rules on gambling activity, which provide that such activity should normally be exempt from VAT.

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