Chargeability for Value Added Tax excluding chargeability on Financial Services
Who are liable for Registration?
- Services providers
- Suppliers who supply goods under tender agreement
- Suppliers whose supplies are more than Rs. 500 million per quarter ( including exempt and excluded supplies)
Every person who carries on a taxable activity
- If his taxable supply of goods or services or supply of goods and services,
- has exceeded Rs.3, 000,000 per quarter, or
- has exceeded 12,000,000 per annum, or
- likely to exceed Rs.3,000,000 in the succeeding quarter or Rs 12 Million in the succeeding twelve months period
Any person or partnership liable to pay VAT for any quarter commencing on or after January 01, 2013, being a person or partnership engaged in the business of wholesale or retail trade, whose quarterly turnover/supplies exceeds Rs 500 Million (including exempt or excluded supplies)
Registration for VAT
Firstly, a TIN Certificate should be applied & obtained from the Tax Payer Services Unit at 1st Floor (South Wing) of the Inland Revenue Building, Chittampalam A. Gardiner Mawatha, and Colombo 02. Thereafter, VAT registration can be applied from the VAT Branch at 2nd floor (South Wing) of the Inland Revenue Building, Chittampalam A. Gardiner Mawatha, Colombo 02.
Application should be made through VAT Form 11, not later than fifteen days from the date on which became liable for registration.
Documents required for registration
Responsibilities of a Registered person
Certificate of Business Registration
In case of limited liability company
Memorandum & Articles of association
List of Directors
Certificate of incorporation
Copies of NIC of the proprietors/Directors of the business
Particulars of sales to prove the turnover & monthly Bank statements to prove cash receipts.
Documents to prove that exports were made continuously by such exporters
Display the Certificate of Registration at a clearly visible place in the business premises.
Issue tax invoices (to other registered persons).
keep accounts for relevant periods.
Pay taxes and furnish returns on or before due dates.
Inform the department any change in the following without delay.
Name, Business Place, Ownership, Nature of business etc..
- Any person or partnership
- who supplies services other than Finantial Services
- who imports and supplies of goods
- who engaged in the business of wholesale or retail sale, whose quarterly turnover/supply exceeds Rs 500 Million (including exempt or excluded supplies)
Any other Person or Partnership (other than those who referred in 1)
is required to make the payment as follows.
- for the period 1stday – 15th day of a month - on or before end of the month
- for the period 16th day - end of a month - on or before 15th day of the following month
- who supplies goods manufactured by such Person or Partnership
- who engaged in supply of Financial Service
is required to make the payment for the particular month on or before 20th day of the following month.
Furnishing VAT Returns
Due date :
On or before the last day of the month after the expiry of each taxable period ( may be monthly or quarterly)
Hand Over to :
All VAT Returns should be handed over to the DPRA Unit, 7th Floor (North Wing) of Inland Revenue building, Other than, Returns for Special Projects and VAT on Financial Services
Returns for Special Projects should be handed over to the Commissioner (VAT) on the 2nd floor of Inland Revenue building,
Returns for VAT on Financial Services should be handed over to the Banking and Financial Services Unit, on the 4th floor of Inland Revenue building,
For More Details
VAT Unit - 0112134250 /0112338924
Tax Payer Service Unit - 0112328702/ 0112134053
Secretariat -0112135411/ 0112338543