Value Added Tax (VAT) is introduced by the Act No.14 of 2002 and is in force from 1st August, 2002. VAT Act replaced the Goods and Services Tax (GST) which was almost similar tax on the consumption of goods and services.
It is a tax on domestic consumption of goods and services. The goods imported into Sri Lanka and goods and services supplied within the territorial limits of Sri Lanka are the subject matter of this tax. It is a multi-stage tax levied on the incremental Value at every stage in the production and distribution chain of Goods and Services. The tax is borne by the final or the ultimate consumer of Goods or services. It is an indirect tax and the Government will receive at the end, through all the intermediary suppliers in the chain of production and distribution, an amount equal to the amount paid by the final consumer.
There are certain supplies of goods and services exempt from VAT. (As mentioned in the Part II of the First Schedule of VAT Act)
Every person who carries on a taxable activity, if his taxable supply of goods or services or supply of goods and services,
The TIN Certificate should be obtained from
Primary Registration Unit and VAT registration could be obtained from the
Tax Registration Unit at 2nd Floor of the Inland Revenue Headquarters or from any nearest Regional Office of the Department .
Application should be made through Tax Type Registration Form (TPR_005_E), not later than fifteen days from the date on which became liable for registration.
Any Person or Partnership who supplies goods or Service is required to make the payment for the particular month on or before 20th day of the following month.
Due date :
Hand Over to :
Department of Inland Revenue, Sri Lanka,
Chittampalam A. Gardiner Mawatha, Colombo 02.
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