Hospitality business calls for VAT overhaul 

Cafe boss says recruitment issues are a 'crying shame'

There are calls for VAT to be overhauled in attempt to support hospitality businesses facing 'increasing' pressure.

Victory Café wants to see a rebate system which would incentivise organisations to reinvest in themselves and attract more workers to join the industry.

It follows a social media post from its owner expressing her dissatisfaction with MHKs and government ministers.

Detailing difficulties finding staff Vicky Cottier has described recruitment issues as a ‘crying shame’ adding it’s not just her business struggling.

She spoke to Manx Radio about her concerns:

The Isle of Man Government has since responded to Manx Radio's request for comment:

"The Isle of Man Government has committed to continue to comply with conditions set out in the Customs & Excise (Amendment) Agreement 2018 in terms of the administration of VAT on the Isle of Man.

"At the present time there are no plans to make any changes to the terms of that Agreement with the United Kingdom.

"Looking long-term, the Isle of Man Government is continuing to prioritise its long term Economic Strategy, sustaining key sectors and supporting new growth.

"The first year of the Economic Strategy saw the overall number of people employed grow by 700; in 2024-25 the intention is to sustain this pace of progress towards the goal of 1,800 new jobs filled by 2026. 

"Highlighted as a key feature of the Island Plan, a focus is being placed on increasing the number of economically active new residents, who can provide needed skills and investment into the Island.

"The Department for Enterprise is also currently working on the Local Economy Strategy, which will involve identifying and exploring solutions to what businesses may perceive as being barriers to growth."