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

Chapter – 6
Deferment of Collection of VAT
6.1 Although VAT on imported goods is normally collected at the time of import, collection of
VAT is deferred by the D.G.C in respect of certain imports. Similarly collection of VAT
is suspended by the CGIR in respect “tea” sold at the auctions.
6.2 Deferment on Imports
VAT will be deferred by the Customs or the BOI as the case may be in respect of
following imports. Deferment is done on the production of a bank guarantee.
6.2.1 Deferment for 60 to 90 days
i. any goods imported, including any goods received from the customs bonded
area, by a registered person who imports or receives such goods to be used by
such person for the purpose of manufacture and re-export of the goods so
manufactured;
ii.
any goods imported by any registered person referred to in subsection (7) of
section 22, which are project related goods during such project implementation
period;
iii.
iv.
any goods being any plant, or machinery imported for any infrastructure project
funded mainly by a foreign government or any regional or multilateral agency
including the United Nations Organization and its affiliates, during the period of
implementation of such project.
any purchase of fabric, manufactured by a person who has entered into an
agreement with the BOI under Section 17 of that Law for the manufacture of
fabric, by another person who has entered into an agreement with the BOI under
Section 17 for the manufacture of garments for export under such agreement and
utilized such fabric, for the manufacture of garments for export.
6.2.2 Deferment of 12 months
Any goods being plant, machinery or other equipment of high value temporarily
imported in to Sri Lanka and re – export within twelve months, for the period up
to the date of such re – export.
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