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

The sub-contract awarder should pay VAT upfront of deferred basis prior to removal on
a Cusdec. Processor to issue a Tax invoice for the processing charges.
1.5.3 EPZ project undertakes for a BOI or non-BOI export oriented outside EPZ project :-
Permitted on the request of the EPZ enterprise subject to production of goods at the time of
bringing in and out of EPZ. Tax invoice to be issued for the processing charges by the processor.
1.6 REMOVAL OF MACHINERY AND EXQUIPMENT FOR REPAIRS AND LOANS:-
1.6.1 Maximum of 05 Nos. machines or parts of a particular category :-
Permitted to remove without payment of VAT.
1.6.2 Machines given or taken on loan basis for temporary use and return :-
No VAT is chargeable. Present format and procedure will continue.
1.7 REMOVAL OF SAMPLES
1.7.1 Removal to a buying office or buyer's representative is not subject to payment of VAT.
The present BOI controlling system will continue.
2. PROJECTS LOCATED OUTSIDE EPZZ ENGAGED IN DIRECT EXPORT OF GOODS AND
SERVICES (ENTERPRISES REGISTERED FOR DEFERRED FACILITY)
2.1 IMPORTS
2.1.1 Project related items needed for the establishment of project can be imported exempted from
payment of VAT for the following categories, during the project implementation period as
specified in the agreement or up to the date of completion of project whichever is earlier.
BOI enterprises signed agreements prior to 16/05/1996
And,
BOI enterprises signed agreements prior to 01/04/1998 where the total cost of investment is not
less than Rs.500 million.
2.1.2 The following projects which are permitted to import project related items on the exemption of
payment of VAT for a period of two years from the appointed date of VAT or until the completion
of the project specified in the agreement which ever is earlier.
(a)
Housing and Health care project.
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