Value Added Tax (VAT)

SVAT

Proposed to remove the SVAT scheme as it could hardly be called simple. It has become redundant with an efficient and smoothly operational technology driven VAT administration process brought about by the IRD automation system.

 

VAT Exemptions

Plants, machinery and accessories for renewable energy generation identified under the following H.S Code Nos.

8454.10, 8501.31.10, 8503.00.10, 8503.00.20, 8503.00.90, 8504.10.10, 8504.10.90, 8504.21.10, 8504.21.90, 8504.22.10, 8504.22.20, 8504.22.30, 8504.22.90, 8504.23.90, 8504.31.10, 8504.31.90, 8504.32.10, 8504.32.90, 8504.33.10, 8504.33.90, 8504.34.90, 8504.40.10, 8504.40.20, 8504.40.30, 8504.40.90, 8504.50.10 , 8504.50.90, 8504.90.10, 8504.90.90, 8513.10.10, 8539.31.20, 8541.40, 9032.89.10, 9405.10.10, 9405.10.20, 9405.20.10, 9405.20.20, 9405.40.30, 9405.40.40

 

Plant and Machineries imported by CEB for generation, transmission and distribution will be exempted from VAT.

 

Exempt the provision of geriatric care and child care services

 

Certain electrical goods identified under HS Code Nos

8516.40 8516.72 8527.21 8527.29 8527.91 8527.92, 8528.72.41 8528.72.9,9101.11 9101.19 9101.19.10 9101.19.90, 9101.21 9101.29 9101.91 9101.99 9102.11 9102.12, 9102.19 9102.21 9102.29 9102.91 9102.99 9105.11, 9105.19 9105.21 9105.29 9105.91 9105.99

Magazines, journals or periodicals other than newspapers, identified under HS Code Nos 4901.10, 4901.91, 4901.99, 4901.99.10, 4902.10.10, 4902.90.10.

Medical Machinery and medical equipment identified under the HS Code No.8421.29.10 136

 

The following exemptions will be removed :

– Gold coins, precious metals and precious stones identified under following HS Codes Nos.

7101, 7102, 7103, 7104, 7105, 7106, 7107, 7108, 7109, 7110, 7111, 7113, 7114, 7116, 7118.90.10 .

– Import or supply of jewellery.

– Locally manufactured milk powder.

 

VAT Refunds at Ports & Airport

  • A refund mechanism at ports and airports will be introduced for foreigners who stay not more than 30 days in Sri Lanka on the VAT paid by them in purchasing goods in Sri Lanka.

 

  2017 Budget Proposals – VAT, PAL, NBT Liables and Exemptions

 

 

 

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