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

More documents

Recommendations

Info

ii. iii. But “travel insurance“ and “goods purchased in Sri Lanka and taken out of Sri Lanka” are not zero-rated. They are subject to VAT at rates applicable to supply of service (insurance) and supply of goods respectively. Services provided by General Sales Agents (GSAA) and other licensed agents in relation to (international) travel are also zero-rated. However any other agent, if he is a registered person should charge VAT to his client and declare ‘output ‘ tax. iv. The commission received by local agent on out-bound travel is liable to VAT at 20%. v. The out-bound tour operator should charge VAT on the rupee value of the gross selling price of that portion of the tour which is related to any service to be performed within Sri Lanka. (i.e local portion) The exchange rate should be the rate at the time of sale and no adjustment will be made for the difference, if any, in the net revenue received. vi. If the product is sold to a customer through an overseas agent VAT is payable by the Sri Lankan supplier on the local portion of the final selling price to that customer. The local portion may be ascertained on a suitable proportionate basis. vii. Marketing costs overseas and funds sent overseas to support marketing activities to be performed outside Sri Lanka will not attract VAT. viii. Overseas agent’s commission is liable to VAT if he is registered. ix. If the product is sold to an overseas agent who then independently markets and on-sells that product to a customer overseas, then VAT is payable by the Sri Lankan supplier on the local portion of the selling price of the product to that agent. 26.4 In-bound Travel i. VAT will be charged to the overseas customer on in-bound travel products since all the services are consumed in Sri Lanka. ii. If the in-bound tour operator is billing the overseas customer for the entire tour including hotel charges the rate of VAT is 10%. 146
iii. iv. In such situations the hotel is billing the agent/tour operator for the customers stay in Hotel. Such bills too should to subject to VAT at 10%. This is the output tax for the hotel and input tax for the tour operator. If the tour-operator/agent is billing only for the travel portion and the hotel is separately billing the customer the hotel bill is subject to VAT at 10%. The local tour portion which is separately billed by the agent/tour operator is subject to Vat at 20%. v. If the product is sold to a customer through an overseas agent then VAT is payable by the Sri Lankan supplier on the final selling price to that customer. The total consideration may be treated as VAT inclusive and the output tax should be declared by the supplier. vi. vii. viii. Marketing costs incurred overseas and funds sent overseas to support marketing activities to be performed outside Sri Lanka will not attract VAT. Overseas agent’s commission is liable to VAT if he is registered. If the local tour operator (supplier) sells the in-bound travel product to an overseas agent, who then independently markets and on-sells that product VAT is payable by the Sri Lankan supplier on the selling price to that agent. 26.5 Hotel Industry Following are the rates of VAT that should be applied by Hotels. Rooms sales, Food sales, A’la carte sales, Buffet and catering for weddings can be considered under the lower rate of 10%. Laundry if it is billed to the guest by the hotel and if the laundry service is part and parcel of the taxable activity carried on by the hotel then it can be considered under the lower rate. If the laundry is a separate entity and if its turnover is not a part of the hotel’s turnover then it should be taxed at higher rate of 20% for VAT. Letting convention halls is subject to VAT at 20% except in cases coming under 26.5. All other services such as locker sales, Telephone, Swimming pool tickets, photo copy charges, beverages (whether package or outlet), wedding hall hires, miscellaneous sales(exhibitions, animation, cockage etc), commissions, service charges, herbal fitness etc, should be taxed at 20%. 147
Page 1 and 2:
But for the best to the September 0
Page 3:
Preface The Value Added Tax Act was
Page 6 and 7:
Chapter - 1 Introduction 1.1 Purpos
Page 8 and 9:
However from the point of view of t
Page 10 and 11:
The following test which has been a
Page 12 and 13:
iv. Import of any fabric, yarn, gre
Page 14 and 15:
Chapter - 3 The definitions of conc
Page 16 and 17:
Eg. 1 : If “A” wants to termina
Page 18 and 19:
c. Time of supply in relation to su
Page 20 and 21:
Thus, any trade, business, etc. are
Page 22 and 23:
a business in Sri Lanka and not to
Page 24 and 25:
When the recipient is not a registe
Page 26 and 27:
• There are two types of registra
Page 28 and 29:
(ii) continued without making an ap
Page 30 and 31:
(d) (e) (f) input credit has been c
Page 32 and 33:
4.13 Activity Code Number “Suppli
Page 34 and 35:
the H.S. classification it may be b
Page 36 and 37:
5.8 Payment of tax on Assessments T
Page 38 and 39:
5.11. Collection of VAT on Imports
Page 40 and 41:
6.3 Approval For Deferment Facility
Page 42 and 43:
iv. If an importer declares only pa
Page 44 and 45:
6.6 Deferment on Local Supplies (Te
Page 46 and 47:
7.4 Tax Invoice Tax invoice should
Page 48 and 49:
7.11 Use of tax fraction to compute
Page 50 and 51:
Lower Rate - 10% Goods and services
Page 52 and 53:
Chapter - 9 Calculation of Tax 9.1
Page 54 and 55:
accounted for in respect of all the
Page 56 and 57:
transferred to a taxable activity a
Page 58 and 59:
Eg. If A is an ice-cream vendor who
Page 60 and 61:
(3) In the above case if the regist
Page 62 and 63:
• claim (deduct) only the allowab
Page 64 and 65:
• “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 116 and 117: Chapter - 21 Some Obligations Under
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 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
Page 166 and 167: Annexure - 2 First Schedule to the
Page 168 and 169: 4. Supply of any services to any Di
Page 170 and 171: Services 1. Electricity more than 3
Page 172 and 173: Sale before 01.08.2002 - GST Regime
Page 174 and 175: GST = (CIF + CD + Surcharge + Ex.Sp
Page 176 and 177: to indicate the date of payment of
Page 178 and 179: The period within which the Board o
Page 180 and 181: Mrs. S.N.P. Abrew - Senior Assessor
Page 182: 182
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?