FERSA Business Survey

In March 2024 a wide variety of businesses in the island will be issued with a survey,  the completion of which will be mandatory under the Statistics Act 1999.  The information gathered from businesses will pertain to the irrecoverable VAT incurred on their expenditure.  Where this information is not known then participating businesses will be asked to provide details of all their expenditure so a calculated estimate can be obtained.   Approximately 2,500 businesses in total will be issued with the survey and will include all within the bank, insurance, e-gaming, other financial services and property management.  These industries in particular are being targeted because these are where the bulk of the irrecoverable VAT is incurred   A sample of small businesses e.g. from the clubs, charities etc… will also be included in the survey.

What is FERSA and why is it important

FERSA is the revenue sharing agreement between UK Governments with the Isle of Man under which the Islands share of VAT, Customs and certain Excise are determined.  A full explanation of the agreement can be found here

The Irrecoverable VAT incurred is measured by collecting information through surveys that are issued to households, visitors and businesses in the Island.  The data collected from these sectors is then extrapolated to calculate the total irrecoverable VAT incurred within the survey year by the Isle of Man.

This Agreement is extremely important to the island because it represents about 1/3 of the total income the Isle of Man Government receives each year making it essential for the maintenance of the Islands economy and infrastructure.

Trust and Corporate Service Providers

The Trust and Corporate Service Providers will be asked to provide additional information in regard to the irrecoverable VAT incurred by the structures that they manage.

Support

All participating business will be given access to a support line and, if necessary, face to face meetings.  Details will be found in the covering letter of the survey.

At Rowany Solutions Limited we are committed to helping and supporting our clients achieve their legal and regulatory compliance obligations in a robust and effective manner and can help you review your policies and procedures in respect of global sanction regimes and to prepare you for the ongoing FSA thematic project.

Contact us on 729000 or at info@rowany.im to arrange an initial chat over coffee for more information on how we can assist you or to arrange a free no obligation initial consultation.