VAT Guide to Value Added Tax - sri lanka inland revenue ...
VAT Guide to Value Added Tax - sri lanka inland revenue ...
VAT Guide to Value Added Tax - sri lanka inland revenue ...
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v. Importation of services are not recognized in the Cus<strong>to</strong>ms Ordinance.<br />
However a supply of a service which constitute a taxable activity, carried on or<br />
carried out in Sri Lanka by a person outside Sri Lanka is liable <strong>to</strong> <strong>VAT</strong> under <strong>VAT</strong><br />
Act. Vide Eg. 2 in para 3.7 (ii)<br />
vi. In the case of importation computer soft ware the question will arise as <strong>to</strong><br />
whether they are goods or services. Normalized mass produced common<br />
software which can be used by any person and which may be received in<br />
diskettes, magnetic tapes, discs and games packages etc is treated as goods<br />
whereas specific cus<strong>to</strong>mized software is treated as services. (vide para 3.3)<br />
vii. <strong>VAT</strong> on importation of goods is calculated on the “value of supply” which is =<br />
(CIF + Cus. Duty + Any surcharge + Cess + Ex. Spl. Duty) at 10% or 20% as the<br />
case may be. - Vide para 3.8(2)<br />
16.8 Imports by non-registered persons : <strong>VAT</strong> is chargeable on the importation of goods by<br />
any person whether he is a registered person or not if the goods are liable <strong>to</strong> <strong>VAT</strong>. If<br />
the importer is not a registered person he is required <strong>to</strong> obtain an Importers<br />
Identification Number from the <strong>VAT</strong> Branch in order <strong>to</strong> clear the goods from the<br />
Cus<strong>to</strong>ms.<br />
16.9. Deferment of <strong>VAT</strong> on Imports : The D.G.C is required <strong>to</strong> defer the collection of <strong>VAT</strong> for<br />
a period of 60 days in respect of certain goods as enumerated in Section 2(3) – Vide<br />
Chapter 6 and 16.10, 16.11.<br />
16.10 Exemption of Imports by BOI companies Please see para 10.4<br />
16.11 Exemption of imports made in personal baggages, and import of personal goods<br />
and business samples through courier and parcel post - Please see para 10.3<br />
16.12 Exemption of Imports - Other items – are enumerated in the First Scheduled <strong>to</strong> the<br />
Act. Please see Annexure 2<br />
16.13 Exclusion of Imports by approved trading houses – Please see para 2.4.1 (iii)<br />
16.14 Input tax on goods imported by a registered person which are not used in a taxable<br />
activity or partly used in a taxable activity - shall be allowed on a proportionate basis<br />
section 22 (3)<br />
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