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

24.4. Invoicing - Special Arrangements –
i. Master Invoice - Sri Lanka Telecom - With the introduction of a discount
system by S.L. Telecom a requirement of a Master invoice has arisen. This will
be applicable to any subscriber having a number of telephone connections. In
such cases the SLT will issue a Master invoice showing the discount and the
VAT. They will not show the VAT in the individual bills covered by the master
Invoice.
A Master invoice will be issued only where all the telephones were subscribed by
the same person.
A problem may arise in ascertaining disallowable VAT input tax if one or more
telephones covered by the Master invoice have not been used in making taxable
supplies. In such cases the disallowable VAT may be calculated using the
following formula.
Disallowable Telephone Total Bill x VAT charged in the Master Invoice
Master Invoice Gross Bill
When the GST/VAT input tax has been claimed using the Master invoice the
individual bills covered by the Master invoice should be checked and make the
necessary adjustments using the above formula.
ii.
Central Invoicing - Several Companies in one Group
This is a ruling given to one group of companies and this can be approved to be
extended to similar groups under exactly similar circumstances if a request is
made. In order to streamline the procurement of goods/services for the
companies under the group and to enjoy the economic benefits they wanted to
have the invoices from the suppliers to be received by one central company and
debit the expenditure only to the other companies on some valid basis. Entire
GST/VAT will be claimed by the central company who receive the invoice. In this
case all institutions covered will be registered persons making only taxable
supplies.
This has been agreed subject to the following conditions:
• This method should be applicable only to the services and not for goods.
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