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

5.11. Collection of VAT on Imports and BOI
As indicated above in para 5.1.2, in terms of Section 2(3) of the VAT Act, VAT on
importation of goods shall be charged, levied and collected by the Director General of
Customs as if it is a Customs duty. However the DGC has delegated his powers to the
BOI in respect of importation of goods by enterprises registered under Section 17 of the
BOI Act. Such enterprises are required to submit their Cus-Decs and other import
documents to the relevant documentation unit of the BOI. The BOI has documentation
units at their Investor Services Section in Colombo 01, and at Katunayake, Biyagama
Koggala and Pallekele. Thus, in the case of importation of goods by such enterprises
VAT is collected by the BOI and remit it to the DGC’s VAT collection account. For the
purpose of examination of goods BOI has verification yards at Central Verification
Terminal of the Customs Department at Orgodawatta and at Katunayake Air Cargo
Village at the Air Port, with regard to goods imported by enterprises outside the
investment promotion zones. In relation to goods imported by enterprises within the
zones the goods are examined within the factories by the verification officers of the BOI,
stationed in the zones.
* In these cases VAT deferment scheme is also monitored by the BOI but is implemented
by the Customs
* The VAT collected by the BOI on the goods imported by BOI enterprises are remitted to
the D.G.C’s VAT collection account. In addition BOI also pays VAT on its own as a VAT
Registered Person on the documentation charges and examination charges levied by
them on the importers. Such VAT is their output tax, and is paid direct to the CGIR.
* The other important thing to note is that on importation of goods VAT is payable
irrespective of the value of imports (that means there is no threshold) and
irrespective of whether the importer is a VAT registered person or not provided the
goods are not exempted or excluded from VAT.
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