VAT treatment in Monaco and the Isle of Man

Whilst Monaco and The Isle of Man are not part of the EU they are treated as so for the purposes of VAT.

For Monaco Value Added Tax is levied on the same basis and at the same rate as in France, since 1993 an agreement has been in place meaning that French customs regulations apply directly in the Principality of Monaco. French Customs therefore operate the levying of VAT on non EU transactions whereas the Monaco authorities operate the levying on all other transactions. This means that EU member states need to ensure that transactions originating in or intended for Monaco are treated as if they were for France. Companies in Monaco are registered with a French VAT registration number.

The Isle of Man is treated the same as the United Kingdom for VAT purposes, it has the same rate also. This means that goods sent from the UK to the Isle of Man are not treated as exports, and so VAT must be charged at the usual UK VAT rate the same is true for services. Other EU members must treat the Isle of Man the same as if it was to The United Kingdom. Companies in The Isle of Man are given a UK registration number.

They are both incorporated into European customs territory (although remain a third country with regard to the European Union).

Laura Stockley
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Laura Stockley

Consultant at eBiz Answers Ltd
Laura graduated from University with a degree in Business Studies, and has been working as an Oracle eBTax consultant for several years now, with both R12 eBTax and Fusion (Oracle Cloud) Tax. Focussing primarily on the tax module and its components, Laura also works on the other financial modules and understands how they integrate with the tax engine. Laura has worked on projects with multiple clients covering all aspects of the tax module including AP, AR and GL, working on everything from design, configuration, testing to support. An excellent communicator, Laura enjoys interacting with end users and relishes the challenge of resolving their issues; making tax an enjoyable experience, always.
Laura Stockley
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