We predict how single oxygen ions can be manipulated on the MgO (100) surface and demonstrate the possibility of detecting a single-atom event using a noncontact atomic force microscope. The manipulation process is simulated explicitly in real time with a virtual dynamic atomic force microscope including the full response of the instrumentation and demonstrates a strong dependence on temperature. The proposed new atomistic mechanism and protocols for the controlled manipulation of single atoms and vacancies on insulating surfaces may be relevant for anchoring molecules and metal clusters at these surfaces and controlling their electronic properties.