Registered person is entitled to claim a refund only he makes taxable supplies. But the VAT collected by the Department of Customs on the importation of goods for resale without processing will not be refunded. If any person registered under the section 22(7), any amount of VAT paid on purchases of goods or services can be claimed as a refund before commencing its commercial operation (during the project implementation period) even if there is no output.
Refund to be made a registered person may have two parts that is, it may be partly by a Credit Voucher and the balance by a cheque.
Deferment of tax takes place at the time of import. According to the provisions of the Act, those persons that have obtained this facility can make imports without paying VAT at the time of import.
A separate column has been provided in the cage showing imports in the VAT return to indicate deferred imports and a credit voucher is issued for the amount of tax so differed.
Any person who has registered under following categories can claim refunds.
Further, the above persons are qualified to register as Registered Identified Persons (RIP) under SVAT Scheme and qualified to purchase goods or services without VAT.
In order to issue VAT refunds without unnecessary delays, above persons should comply with the following procedures.
Inland Revenue Department, Sri Lanka,
Chittampalam A. Gardiner Mawatha, Colombo 02.
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