Organization : Sri Lanka Inland Revenue
Facility : VAT Refund Procedure
Country : Sri Lanka
Website : http://www.ird.gov.lk/SitePages/Default.aspx
Details Here : http://www.ird.gov.lk/en/publications/SitePages/VAT%20Refund%20Procedure.aspx?menuid=1410
IRD VAT Refund Procedure
Registered person is entitled to claim a refund only he makes taxable supplies. But the VAT collected by the Department of Customs on the importation of goods for resale without processing will not be refunded.
Related : Sri Lanka Inland Revenue Registration For VAT : www.statusin.org/8978.html
If any person registered under the section 22(7), any amount of VAT paid on purchases of goods or services can be claimed as a refund before commencing its commercial operation (during the project implementation period) even if there is no output.
Refund to be made a registered person may have two parts that is, it may be partly by a Credit Voucher and the balance by a cheque.
Deferment of tax takes place at the time of import. According to the provisions of the Act, those persons that have obtained this facility can make imports without paying VAT at the time of import.
A separate column has been provided in the cage showing imports in the VAT return to indicate deferred imports and a credit voucher is issued for the amount of tax so differed.
Claim Refund
Any person who has registered under following categories can claim refunds.
** Exporters or Zero rated service providers under the Section 7 of the VAT Act.
** A manufacturer who supplies goods(deemed exporter) manufactured by himself to a exporter
** A value added service provider, who provides services to an exporter which results in improvement of the quality, character or value of the goods manufactured for export.
** A project approved by the CGIR under 22(7) – (during the project implementation period)
** A person engaged in any specified project.
** Any supplier who supplies goods or services to a specified project or a Strategic Development Project.
Further, the above persons are qualified to register as Registered Identified Persons (RIP) under SVAT Scheme and qualified to purchase goods or services without VAT. In order to issue VAT refunds without unnecessary delays, above persons should comply with the following procedures.
** Duly filled VAT returns should be submitted on due dates to the correct place.
i. Returns in respects of specified projects or Strategic Development Project to be submitted to the Senior Commissioner (VAT) in 2nd floor of IRD Building.
ii. Other returns to the DPRA unit in 7th floor.
** Guidelines issued under SEC 2008/3 and SEC 2008/04 should be followed in respect of specified projects and suppliers of those projects.
** Ensure that following items are correctly stated in the returns.
i. Input VAT on imports during the period.
ii. Input VAT on local purchases during the period.
iii. Amount of exports during the period.
iv. Amount of suspended sales during the period.
** Below mentioned documents should be prepared and keep with you until VAT Refund Unit
** call to submit those documents.
i. a schedule of imports (deferred and upfront) with original cus-decs for the relevant period.
ii. Export Schedule – where return exports data match with custom data or difference below 10% of declared exports.
iii. Export reconciliation – where return export data does not match with custom export data or difference is above 10% of declared exports.
iv. Local purchases schedule with original tax invoices for the relevant period.
Value Added Tax
Value Added Tax (VAT) is introduced by the Act No.14 of 2002 and is in force from 1st August, 2002. VAT Act replaced the Goods and Services Tax (GST) which was almost similar tax on the consumption of goods and services.