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

1.4.3 Imported goods (except fabric for garment manufactures) or manufactured goods to
export oriented or non-export oriented outside EPZ BOI project :-
Permitted on submission of a Cusdec by the recipient for the payment of VAT i.e. for imported
items on the material value and for manufactured items for the mark-up value.
In case of imported fabric for garment manufacturers VAT is not payable, however BOI approval
to be obtained.
1.4.4 Imported or manufactured goods to TIEP manufacturing bond or infac project :-
Permitted on submission of a Cusdec for payment of VAT on market value to Sri Lanka Customs
by the recipient with BOI approval.
1.4.5 Imported or manufactured goods to a non-BOI project, home consumption or to an individual :-
Permitted if the BOI enterprise is entitled to sell such goods on submission of a Cusdec
for the payment of duty. VAT and other levies to Sri Lanka Customs. In the case of sale of
finished garments Rs.25/= per piece will have to be paid.
1.4.6 Imported goods except fabric or manufactured goods by an outside EPZ BOI project to an
EPZ project:-
Permitted on declaration of goods to BOI Security at Main gate of relevant EPZ along with a tax
invoice on the market value (original + copy) and production of goods to BOI Verification Unit.
BOI prior approval is necessary.
In case of fabric VAT is not payable, but prior BOI approval should be obtained.
1.4.7 Imported or manufactured goods by TIEP, manufacturing bonds or Infac project to an EPZ
project:-
Permitted on submission of a Cusdec/GRN to be processed at SLC by the seller. Goods should
be declared to the BOI Security at the Main gate of EPZ with a copy of invoice and production of
goods to BOI verification. Prior BOI approval is necessary.
1.5 SUB-CONTRACTS
1.5.1 To inter or intra zone project :-
Tax invoice to be issued by the processor for the processing charges.
1.5.2 To a BOI project located outside EPZ:-
159