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

15.3 Keeping of records regarding excluded supplies of buying and selling
Retail and wholesale sales are not liable to VAT unless the registered person is
specifically registered to collect VAT on such sales. But if a supplier is unable to satisfy
the C.G.I.R as to the source from where the goods were acquired then such goods are
liable to VAT. The evidence required with regard to the acquisition of goods to satisfy the
C.G.I.R was published by a press notice on 07.07 2000. It is valid for VAT purposes as
well.
According to this press notice, if any person claims that his supplies are excluded from
VAT for the reason that the supplies constitute local buying and selling only, then he
should maintain following minimum registers & documents as evidence with regard to
acquisition of such goods in order to satisfy the C.G.I.R
1. Register of goods acquired locally – (cash or credit)
This register should contain the following details
(a) Date of the transaction
(b) Name and Address of the supplier (including the business Name)
(c) Category of goods and quantity/volume
(d) Whether imported goods or locally manufactured goods
(e) Consideration and the mode of payment
(f) Amount of GST paid, if any
2. The relevant bills and tax invoices (chronologically arranged)
When these details cannot be produced or incorrect details have been kept the
relevant supplies will not be considered as excluded supplies (when the
relevant supplies cannot treated as excluded supplies 1/6 of the total sales will
be treated as VAT payable as output tax)
However, the above requirements will not be applicable to goods exempted from
the tax.
15.4 Keeping of records regarding supplies made to Diplomatic Personnel
Please see para 20.5
15.5 Other Records
• As stated in Chapter 21 a record must be maintained with regard to any GST tax
declared in a VAT return as output tax or input tax as the case may be.
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