2. Amendment of section 2 of the Value Added Tax Act…

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 2 of the Value Added Tax Act, No.14 of 2002

(hereinafter referred to as the “principal enactment”) is hereby amended as follows:-

(1)

in item (iii) of sub-paragraph (v) of subsection (1)

of that section by the repeal of the words and figures

“(iii) for the period commencing on” up to the words

“at zero per centum” and the substitution therefor of the following:-

“(iii)

for the period commencing on November 23, 2010 and ending on December 31, 2010

and for any taxable period commencing on or after January 1, 2011, and ending on

December 31, 2014, at the rate of twelve per centum (of which the tax fraction is 3/28); and

Act, No. 11 of 2015

(iv)

for any taxable period commencing on or after January 1, 2015 at the rate of eleven per centum (of which the tax fraction is 11/111), on the value of such goods or services supplied, or goods imported, other than the goods or services chargeable with tax at zero per centum”; and

(2)

by the repeal of item (vi) of sub-paragraph (e) of subsection (2) of that section and the substitution therefor of the following new sub-paragraph:-

“(vi)

any person registered under the provisions of subsection (7) of section 22 of this Act, including any strategic development project in terms of subsection (4) of section 3 of the Strategic Development Project Act,

No.14 of 2008, as is referred to in sub-paragraph (i) of paragraph (f) of Part II of the

First Schedule where purchases are allowed to be made from persons registered for

Simplified Value Added Tax Scheme, during the project implementation period insofar as such supplies are project related supplies;”.

(3)

in sub-paragraph (e) of subsection (2) of that section, by the substitution for the words “such purpose and which are specified in the Order published in the Gazette.” of the words “such purpose and published in the Gazette.”.

Read on from s 3