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

Appendix – I
Comparison of the value of imported goods under
GST and VAT
Assume that the C.I.F value of goods imported is Rs.100/-, Customs Duty is levied at 25% ( & surcharge
at 10%) and that the goods are not liable to Excise (special provisions) Levy and Cess.
i. Under GST regime (prior to 01.08.2002)
GST = (C.I.F + Cus Duty + Surcharge + Ex.Spl.Duty+ Cess) x 12.5
100
= (100 + 25 + 10 + 0 + 0) x 12.5
100
= 16.87
NSL = (C.I.F + Cus Duty ) x 125 x 6.5
100 100 In the Calculation of the
NSL
= (100 + 25 ) x 125 x 6.5 the surcharge on Customs Duty
100 100 is not taken into account
= 10.15
∴Total landed cost after taxes = CIF + Cus Duty + Surcharge + GST + NSL +
(Excluding Stamp Duty)
Ex.Spl.Duty+Cess
= 100 + 25 + 10 + 16.87 + 10.15 + 0 + 0
= 162.02
ii. Under VAT Regime – (After 01.08.2002)
VAT = (C.I.F + Cus Duty + Ex.Spl.Duty+ Cess) x 20
100
= (100 + 25 + 0 + 0) x 20
100
= 25
∴Total landed cost after taxes = CIF + Cus Duty + VAT+ Ex.Spl.Duty + Cess
(Excluding Port Development Levy)
= 100 + 25 + 25 + 0 + 0
= 150
iii.
Sale price to the Consumers
If the importer is a registered person be should charge and collect VAT from the consumers to
whom the imported goods are sold. But in deciding the sale price he need not take into account
the GST or VAT paid to the Customs as it does not form part of his cost.
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