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

24.15 Management Companies
Sometimes it is possible that a hotel or an estate is managed by a management company
and the management [company is the registered person which is registered for VAT with
the C.G..R while the hotel or the estate has no registration on its own. But invoices in
respect of certain services obtained by the hotel or the estate (such as telephone, water
and electricity) may be received in its own name and not in the name of the management
company. They are not entitle to ask for ‘tax invoices’ because the hotel or the estate is
not a registered person. In such situations the management company can obtain prior
approval from the CGIR to apply the tax fraction in order claim input tax in respect of
such invoices. (claim should be forwarded to File VAT/Gen/18)
24.16 Input tax on assets purchased in the name of partners
Partnership being a non legal entity, sometimes it may not be possible to purchase
certain assets in the name of a partnership. The asset and the invoice in such situations
maybe in the name of an individual partner and the partnership, although a Registered
Person, will be without a tax invoice while input tax has been paid in respect of that asset.
In such cases the partnership should obtain prior approval from the C.G.I.R in order
claim input tax in respect of such assets by applying the tax fraction by forwarding
i. evidence to the effect that the asset was purchased out of partnership funds and
ii. a letter of confirmation singed by the precedent partner to the effect that the
asset will be brought into the partnership balance sheet.
(claim should be forwarded to File VAT/Gen/18)
24.17 Project cost of BOI Companies engaged in housing projects
The project cost of BOI companies engaged in housing projects for the purpose of liability
to VAT as envisaged in item (xxiii) of the First Schedule to the VAT Act should be the
actual cost of the project under taken and not the capital or the investment in the
company.
24.18 Educational Services(professional bodies)
Although some professional bodies which conduct professional examinations or provide
vocational training may qualify as recognized institutions (within the meaning of
educational establishment) in view of the fact that their capital have been contributed
wholly or partly by the government (vide 24.5) the following will not be treated as exempt
educational services.
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