The re-invoicing must have economic substance in order to withstand audit by tax authorities. This requires good documentation and planning. VAT number is indistinguishable from a UK VAT number and can be applied for by a Isle of Man or foreign registered company which operates from the Isle of Man. The Isle of Man is not deemed to be a flag of convenience and has a quality register maintaining high standards based on UK legislation and offers a practical approach to Maritime rules and regulations. The Isle of Man register is part of the British register and the British Red Ensign is normally flown on Isle of Man yachts.
Fees are competitive and are set only to recoup administrative costs.
There are no annual tonnage taxes. However if a company is to be completely dormant only holding a property, it may be wise to structure it as a resident company. The entry clearance and general residency requirements of the Isle of Man are very similar to those of both the United Kingdom and Republic of Ireland . Unlike Jersey there are no special residency permit or financial constraints placed upon prospective permanent residents. There may also be significant capital gains and inheritance tax savings, however British nationals may not be able to avail themselves of all the potential fiscal benefits as a result of the Islands lone Tax Treaty with the United Kingdom.