More than £2m in unpaid VAT is owed by food and drink businesses on the Isle of Man.

Almost half a million pounds is also outstanding from businesses in the accommodation sector, Treasury Minister Chris Thomas has revealed.

He was responding to a written question from Douglas North MHK John Wannenburgh, who sadly passed away this week, shortly after submitting it.

Mr Wannenburgh asked how many entertainment and hospitality businesses are VAT-registered, how many are more than three months behind with their VAT payments, the total value of the outstanding debt, and whether any business rates relief is planned for the sector.

In his written reply, Mr Thomas said: 'The total number of VAT-registered businesses in the business sectors identified as providing entertainment and hospitality is 458, with 79 of these businesses having a VAT debt over three months old.

'The total VAT debt for these sectors as of June 30, 2026 is £2,836,163.'

There are 282 VAT-registered businesses within the food and drink sector, including cafes, restaurants, pubs, clubs and catering businesses.

A total of 72 of those businesses have VAT debts more than three months old, owing £2,389,319.

There are 110 VAT-registered businesses in the accommodation sector, with just seven owing VAT that is more than three months overdue.

The total outstanding VAT debt in that sector stands at £446,844.

There are 66 VAT-registered businesses in the amusement and recreation sector, but none currently has a VAT debt.

Mr Thomas also confirmed that Treasury currently has no plans to introduce business rates relief for the sector.