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

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7.4 Tax Invoice Tax invoice should contain the following particulars. a. the name, address and the registration number of the supplier b. the name and address of the recipient c. the date of the invoice and the serial number d. the date of supply and description of goods or services e. the quantity or volume f. the value of supply, the tax charged and the consideration for the supply, and g. the word 'Tax invoice' at a conspicuous place in such invoice. Invoices issued prior to 01.08.2002. • Any valid tax invoice issued under GST Act prior to 01.08.202 and • Any Cus-Dec or other document authenticated by the D.G.C and issued under the GST Act prior to 01.08.2002 Are also treated as tax – invoices under the VAT Act. With regard to GST invoices that may have to be issued after 01.08.2002 please see paras 7.8 and 22.1 7.5 Invoicing to Government Agencies However any VAT registered person supplying taxable goods/services to any Ministry, Department, Provincial Council, Local Govt. Institution, Government Corporation or Statutory Body shall indicate the amount of VAT charged by him in the relevant invoice, voucher or other document. (i.e. a tax-invoice should be issued) 7.6 Grace period under Section 79 Non compliance of invoicing requirements is an offence punishable under the Act. Any person who is unable to comply with those requirements due to specific problems of converting existing invoicing systems or computer systems etc. will be given time till 30 th September 2002 to make suitable alterations to the systems if such person appraises the C.G.IR of his difficulties and undertakes to issue such invoices complying with such requirements to the maximum possible extent with effect from 01.08.2002. 46
7.7 Normal Invoice • Normal invoice issued to non-registered persons - should indicate the Registration Number of the supplier - should not indicate the tax separately. - It should be a tax inclusive invoice where only the total consideration is shown. • This is also referred to as a tax-inclusive invoice or a simplified invoice. 7.8 GST invoices issued prior to 01.08.2002 (Sec.20(2) Tax invoices under the VAT Act can be issued only in respect of taxable periods commencing after 01.08.2002. GST has to be charged and valid GST invoices have to be issued in respect of taxable periods prior to 01.08.2002. But valid tax invoices under the GST Act in respect of supplies made prior to 01.08.2002 can be issued even after 01.08.2002. Valid GST invoice can be issued within 14 days from the time of supply. Eg. Security Services provided in July 2002 is subject to GST at 12.5% (and the NSL at 6.5%). Invoice for this can be issued within 14 days of the time of supply. Time of supply means the time as defined in Sec. 4 of the GST Act which is the same as Sec. 4 of VAT Act. (It is not the actual time of a transaction) Therefore GST invoice for such service may be issued sometime in August 2002. VAT cannot be charged and therefore VAT invoices cannot be issued in respect of supplies made in taxable periods prior to 01.08.2002. Therefore the words “valid tax invoice issued under the GST Act prior to 01.08.2002” are construed to mean “valid tax invoice issued under the GST Act in respect of supplies made prior to 01.08.2002” 7.9 Proforma invoice is not an invoice for VAT purposes even though it may contain the necessary details. 7.10 Adjusting errors in tax-invoices If the amount of VAT charged by a tax-invoice issued by a Registered Person is higher than the amount properly due then he should account for the higher amount in his records unless he corrects the error with his customer by issuing a credit note. If the amount of tax is lower than the amount properly due he should account for the correct amount of tax due whether he corrects the error with his customer or not. He can issue a supplementary tax-invoice for the amount under-charged. 47
Page 1 and 2: But for the best to the September 0
Page 3: Preface The Value Added Tax Act was
Page 6 and 7: Chapter - 1 Introduction 1.1 Purpos
Page 8 and 9: However from the point of view of t
Page 10 and 11: The following test which has been a
Page 12 and 13: iv. Import of any fabric, yarn, gre
Page 14 and 15: Chapter - 3 The definitions of conc
Page 16 and 17: Eg. 1 : If “A” wants to termina
Page 18 and 19: c. Time of supply in relation to su
Page 20 and 21: Thus, any trade, business, etc. are
Page 22 and 23: a business in Sri Lanka and not to
Page 24 and 25: When the recipient is not a registe
Page 26 and 27: • There are two types of registra
Page 28 and 29: (ii) continued without making an ap
Page 30 and 31: (d) (e) (f) input credit has been c
Page 32 and 33: 4.13 Activity Code Number “Suppli
Page 34 and 35: the H.S. classification it may be b
Page 36 and 37: 5.8 Payment of tax on Assessments T
Page 38 and 39: 5.11. Collection of VAT on Imports
Page 40 and 41: 6.3 Approval For Deferment Facility
Page 42 and 43: iv. If an importer declares only pa
Page 44 and 45: 6.6 Deferment on Local Supplies (Te
Page 48 and 49: 7.11 Use of tax fraction to compute
Page 50 and 51: Lower Rate - 10% Goods and services
Page 52 and 53: Chapter - 9 Calculation of Tax 9.1
Page 54 and 55: accounted for in respect of all the
Page 56 and 57: transferred to a taxable activity a
Page 58 and 59: Eg. If A is an ice-cream vendor who
Page 60 and 61: (3) In the above case if the regist
Page 62 and 63: • claim (deduct) only the allowab
Page 64 and 65: • “Value of Supply” has to be
Page 66 and 67: VAT chargeable = 900,000 x 20% = 18
Page 68 and 69: • The Director General of Customs
Page 70 and 71: 10.5.6 Milk - item (iv) • Liquid
Page 72 and 73: (i) Insurance - xi(i) • Only the
Page 74 and 75: in Sri Lanka and consumed in Sri La
Page 76 and 77: Chapter - 11 Refunds 11.1 Unlike in
Page 78 and 79: 11.7 Set off of refunds against fut
Page 80 and 81: • To make an additional assessmen
Page 82 and 83: a genuine taxpayer who does not wis
Page 84 and 85: Penalties Tax payers should comply
Page 86 and 87: 15.3 Keeping of records regarding e
Page 88 and 89: 15.8 Example of a VAT Account VAT A
Page 90 and 91: the trading house or the other pers
Page 92 and 93: 16.4 Concessions available to Expor
Page 94 and 95: v. Importation of services are not
Page 96 and 97:
Chapter - 17 Hire Purchase Transact
Page 98 and 99:
(a) Under the existing provisions V
Page 100 and 101:
y the hire-purchase company to the
Page 102 and 103:
Chapter - 18 Leasing & VAT 18.1 Lea
Page 104 and 105:
installments. Any VAT not recovered
Page 106 and 107:
18.13 Leasing inputs • Leasing in
Page 108 and 109:
18.15 Leasing Advance Sometimes it
Page 110 and 111:
Thus output tax of B on the termina
Page 112 and 113:
Chapter - 19 Mortgages 19.1 Mortgag
Page 114 and 115:
• Services provided by internatio
Page 116 and 117:
Chapter - 21 Some Obligations Under
Page 118 and 119:
However an adjusted figure must be
Page 120 and 121:
Chapter 23 Construction Contracts 2
Page 122 and 123:
Government agencies mentioned above
Page 124 and 125:
Chapter - 24 Rulings 24.1 Following
Page 126 and 127:
• None of the companies covered b
Page 128 and 129:
which he has supplied to the garage
Page 130 and 131:
instructions can be exempted if suc
Page 132 and 133:
ii. iii. any other registration tha
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i. Membership fees and or subscript
Page 136 and 137:
Chapter - 25 Zero Rated Supplies 25
Page 138 and 139:
(ii) (iii) (iv) Services directly c
Page 140 and 141:
Supply of facilities for crew chang
Page 142 and 143:
4. Yard to Port Transporting contai
Page 144 and 145:
Chapter - 26 Travel Trade, Tourism
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ii. iii. But “travel insurance“
Page 148 and 149:
26.6 VAT ON MICE Tourism VAT rate a
Page 150 and 151:
x. Supply of goods & vehicles free
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and for VAT purposes the two compon
Page 154 and 155:
(i.e the lottery organizer) on whic
Page 156 and 157:
The VAT charged on above should be
Page 158 and 159:
1.2.3 Other imported materials exce
Page 160 and 161:
The sub-contract awarder should pay
Page 162 and 163:
2.3.1 Imported goods (except fabric
Page 164 and 165:
5.2.2 To BOI garment manufacturing
Page 166 and 167:
Annexure - 2 First Schedule to the
Page 168 and 169:
4. Supply of any services to any Di
Page 170 and 171:
Services 1. Electricity more than 3
Page 172 and 173:
Sale before 01.08.2002 - GST Regime
Page 174 and 175:
GST = (CIF + CD + Surcharge + Ex.Sp
Page 176 and 177:
to indicate the date of payment of
Page 178 and 179:
The period within which the Board o
Page 180 and 181:
Mrs. S.N.P. Abrew - Senior Assessor
Page 182:
182
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VAT Guide to Value Added Tax - sri lanka inland revenue ...

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