VAT Guide to Value Added Tax - sri lanka inland revenue ...

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Chapter - 21 Some Obligations Under VAT 21.1 Registered Person • Every Registered person shall display the certificate of registration prominently in his place/places of taxable activity. • Shall display the list of exempt goods and services in his place/places of taxable activity. • Shall issue ‘Tax Invoice” to another registered person and “Normal Invoice” to others. • Shall print clearly the VAT registration number on all invoices whether they are “tax-invoices” or “Normal invoices”. • Shall issue tax invoice only once for each supply. If it becomes necessary to issue a duplicate subsequently the words COPY ONLY must be marked clearly across the invoice • Shall maintain prescribed records of accounts, invoices etc. for a period of 5 years. • Shall notify the CGIR of any changes.[para 4.8] 21.2 General • Any importer, if he is not registered for VAT, must register in advance for clearing goods, irrespective of the value of imports. • Every person must apply for registration within 15 days of becoming liable to charge VAT • Maintain proper and sufficient records for VAT purposes as prescribed under Section 64(2) (The Gazette notice issued under Section 65of GST Act prescribing the records for GST purposes is valid for VAT until such time as a new gazette is issued when required). Vide Chapter 15 • Maintain VAT Accounts (Input Tax and Output tax) and Registers of Import and Export (Vide Para 15.7) • Furnish a return within prescribed date. • Make payments by the due dates. 116
Chapter – 22 Transitional arrangements and other matters 22.1 Transitional arrangements 22.1.1 Input Tax i. If a valid GST invoice is received during VAT period the input tax (although at 12.5%) should be declared in the relevant VAT return depending on whether the recipient is on cash basis or invoice basis ii. If the recipient is on invoice basis, input tax on a valid GST invoice received in VAT period must be claimed when the invoice is received even if it is received during VAT period. iii. If he is on cash basis input tax on a GST invoice must be claimed when the cash is paid subject to the condition that it must be claimed within six months of the receipt of invoice eventhough the cash may be paid in VAT period. x. If a person on cash basis, makes a payment during VAT period, in respect of a GST invoice received prior to 01.08.2002 the claim for deduction of input tax is allowed in the VAT return although it is at 12.5%. But the payment must be made within six months from 01.08.2002. It is also possible that input tax may be claimed in the VAT return on GST invoice raised and received after 01.08.2002. (eg. GST invoice raised on 12.08.2002 in respect of security services provided in July 2002) and received on 20.08.2002). This is because a GST invoice can be issued within 14 days of the time of supply. (Vide para 7.8). 22.1.2 Output Tax i. If a valid GST invoice is being issued during VAT period (as explained in para 7.8 the time of supply is not the time of transaction but the time as defined in Sec. 4 of the GST/VAT Acts) then the supplier has to declare as output tax (the GST tax of 12.5%) in the VAT return for the relevant taxable period depending on whether the supplier is on invoice basis or cash basis. ii. If the supplier is on invoice basis the output tax (of 12.5%) must be declared in the VAT return for the period during which the invoice was issued. iii. If the supplier is on cash basis the output tax (of 12.5%) must be declared in the VAT return when the payment is received. iv. In both cases (12.5% GST tax) has to be declared as output tax in the VAT return. There is no special cage provided in the VAT return for this purpose. This tax should be declared in 20% tax cage i.e. Cage No.1. 117
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But for the best to the September 0
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Preface The Value Added Tax Act was
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Chapter - 1 Introduction 1.1 Purpos
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However from the point of view of t
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The following test which has been a
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iv. Import of any fabric, yarn, gre
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Chapter - 3 The definitions of conc
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Eg. 1 : If “A” wants to termina
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c. Time of supply in relation to su
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Thus, any trade, business, etc. are
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a business in Sri Lanka and not to
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When the recipient is not a registe
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• There are two types of registra
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(ii) continued without making an ap
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(d) (e) (f) input credit has been c
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4.13 Activity Code Number “Suppli
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the H.S. classification it may be b
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5.8 Payment of tax on Assessments T
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5.11. Collection of VAT on Imports
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6.3 Approval For Deferment Facility
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iv. If an importer declares only pa
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6.6 Deferment on Local Supplies (Te
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7.4 Tax Invoice Tax invoice should
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7.11 Use of tax fraction to compute
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Lower Rate - 10% Goods and services
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Chapter - 9 Calculation of Tax 9.1
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accounted for in respect of all the
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transferred to a taxable activity a
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Eg. If A is an ice-cream vendor who
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(3) In the above case if the regist
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• claim (deduct) only the allowab
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• “Value of Supply” has to be
Page 66 and 67: VAT chargeable = 900,000 x 20% = 18
Page 68 and 69: • The Director General of Customs
Page 70 and 71: 10.5.6 Milk - item (iv) • Liquid
Page 72 and 73: (i) Insurance - xi(i) • Only the
Page 74 and 75: in Sri Lanka and consumed in Sri La
Page 76 and 77: Chapter - 11 Refunds 11.1 Unlike in
Page 78 and 79: 11.7 Set off of refunds against fut
Page 80 and 81: • To make an additional assessmen
Page 82 and 83: a genuine taxpayer who does not wis
Page 84 and 85: Penalties Tax payers should comply
Page 86 and 87: 15.3 Keeping of records regarding e
Page 88 and 89: 15.8 Example of a VAT Account VAT A
Page 90 and 91: the trading house or the other pers
Page 92 and 93: 16.4 Concessions available to Expor
Page 94 and 95: v. Importation of services are not
Page 96 and 97: Chapter - 17 Hire Purchase Transact
Page 98 and 99: (a) Under the existing provisions V
Page 100 and 101: y the hire-purchase company to the
Page 102 and 103: Chapter - 18 Leasing & VAT 18.1 Lea
Page 104 and 105: installments. Any VAT not recovered
Page 106 and 107: 18.13 Leasing inputs • Leasing in
Page 108 and 109: 18.15 Leasing Advance Sometimes it
Page 110 and 111: Thus output tax of B on the termina
Page 112 and 113: Chapter - 19 Mortgages 19.1 Mortgag
Page 114 and 115: • Services provided by internatio
Page 118 and 119: However an adjusted figure must be
Page 120 and 121: Chapter 23 Construction Contracts 2
Page 122 and 123: Government agencies mentioned above
Page 124 and 125: Chapter - 24 Rulings 24.1 Following
Page 126 and 127: • None of the companies covered b
Page 128 and 129: which he has supplied to the garage
Page 130 and 131: instructions can be exempted if suc
Page 132 and 133: ii. iii. any other registration tha
Page 134 and 135: i. Membership fees and or subscript
Page 136 and 137: Chapter - 25 Zero Rated Supplies 25
Page 138 and 139: (ii) (iii) (iv) Services directly c
Page 140 and 141: Supply of facilities for crew chang
Page 142 and 143: 4. Yard to Port Transporting contai
Page 144 and 145: Chapter - 26 Travel Trade, Tourism
Page 146 and 147: ii. iii. But “travel insurance“
Page 148 and 149: 26.6 VAT ON MICE Tourism VAT rate a
Page 150 and 151: x. Supply of goods & vehicles free
Page 152 and 153: and for VAT purposes the two compon
Page 154 and 155: (i.e the lottery organizer) on whic
Page 156 and 157: The VAT charged on above should be
Page 158 and 159: 1.2.3 Other imported materials exce
Page 160 and 161: The sub-contract awarder should pay
Page 162 and 163: 2.3.1 Imported goods (except fabric
Page 164 and 165: 5.2.2 To BOI garment manufacturing
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Annexure - 2 First Schedule to the
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4. Supply of any services to any Di
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Services 1. Electricity more than 3
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Sale before 01.08.2002 - GST Regime
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GST = (CIF + CD + Surcharge + Ex.Sp
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to indicate the date of payment of
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The period within which the Board o
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Mrs. S.N.P. Abrew - Senior Assessor
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VAT Guide to Value Added Tax - sri lanka inland revenue ...

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