Sky TV has issued a statement after a number of Manx subscribers said they had been offered refunds on their bills.
Some readers have said that they have been told that because island customers are not able to receive services like Sky Broadband or the telephone package, they are entitled to a monthly VAT refund.
A spokesperson for Sky said: ‘We are currently investigating this. There was some confusion on the part of our customer service agents regarding VAT, but it has been clarified that the Isle of Man pays 20 per cent VAT.
‘Regarding limited services, Sky Tv is available in the island, other services such as broadband are paid for separately so no limited service is being sold.