Value Added Tax (VAT) [Amendments to VAT Act No 14 of 2002]
(a) The supplies made by the following Institutions will not be liable to VAT:
Central Bank of Sri Lanka (including the VAT on Financial services)
Any Public Corporation to the extent of provision of services on behalf of the Government, free of charges out of the
funds voted by Parliament from the Consolidated Fund or out of any loan arranged through the Government.
(b) The supply of services to a Unit Trust by the Unit Trust management company will be exempt from VAT.
(c) The supply of hotel accommodation to any sportsman, organizer of any sport event or sponsor arriving in Sri Lanka for participating in any sport event or activity connected with sport will be exempt from VAT ;
(d) Locally manufactured products out of coconut waste (coco peat, coir fiber, grow pellets, grow bags, twist fiber, coconut husk) will be exempt from VAT.
(e) The import or supply of following items will be exempt from VAT: - Bowsers under H. S. Code No 8704.23.10. 8704.23.20, 8704.32.10, 8704.32.20 - Bulldozers , graders, levelers, excavators under H.S.Code No 84.29 - Fire fighting vehicles under H. S. Code No 8705.30.10 - Road tractors for semi trailers under H. S. Code 8701.20.10 - - Raw materials for the manufacture of energy saving bulbs under H. S. Code No 8543.90 (PART II of the First Schedule will be amended)
VAT Exemption to SME sector
Any person or partnership, with an annual liable turnover/ supplies not exceeding Rs 12mn, from all the businesses carried on by such person or partnership will not be liable to pay VAT.
VAT exemptions to individuals returning after the completion of foreign employment
Any individual who returns from foreign employment and invest his/her savings to commence new businesses will be exempt from VAT for a period of 5 years.
Imposition of VAT for whole sale and retail businesses
Any person or a partnership carrying on a business of wholesale or retail trade and making a quarterly turnover/ supplies (including exempt turnover/ supplies ) not less than Rs 500 Million , will be liable to be registered for VAT. However, the VAT is chargeable on liable supplies only. ( Section 3 of the VAT Act will be amended)
Expected Revenue from brodering the VAT and NBT to super markets is 5,250 Million in 2013.
The VAT exemption applicable on services which result in the improvement of quality, character or value of any fabric or garment will be restricted to such services provided to non-exporters; and - extended to cover such services related to yarn.
Date of Filling VAT Return
The date of filing VAT return will be extended to 30th day of the month, while keeping the due date for payments as 20th. (Section 21 of the VAT Act will be amended)
Sale of manufactured goods to local market by export oriented companies
The export oriented enterprises engaged in manufacturing of garments or ceramic products will be permitted to increase their domestic sales up to 40% subject to VAT and NBT in lieu of all the indirect taxes payable on sale. The present piece based tax of Rs 25/- per piece on sale applicable to garments will be removed.
|< Prev||Next >|