Value Added Tax (Amendment) Act 2024

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

Official translationFrom Department of Government Printing, unchanged

s 1Short title

This Act may be cited as the Value Added Tax

(Amendment) Act, No.16 of 2024.

s 2Amendment of section 2 of Act, No.14 of 2002

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

(hereinafter in this Act referred to as the “principal enactment”) is hereby amended, in sub-paragraph (v) of subsection (1) of that section as follows: -

(1)

by the substitution in item (vii), for the words and figures “at the rate of twelve per centum (of which the tax fraction is 3/28); and”, of the words and figures “at the rate of twelve per centum (of which the tax fraction is 3/28);”;

(2)

by the substitution in item (viii), for the words and figures “for any taxable period commencing on or after October 1, 2022 at the rate of fifteen per centum

(of which the tax fraction is 3/23).”, of the words and figures “for any taxable period commencing on or after October 1, 2022 but ending on December 31, 2023 at the rate of fifteen per centum (of which the tax fraction is 3/23); and”; and

(3)

by the addition immediately after the item (viii) of the following new item:-

“(ix)

for any taxable period commencing on or after January 1, 2024 at the rate of eighteen per centum (of which the tax fraction is 9/59).”.

s 3Amendment of section 10 of the principal enactment

Section 10 of the principal enactment is hereby amended in subsection (1) of that section as follows:-

(1)

by the substitution in paragraph (vii), for the words and figures “(vii) on or after October 1, 2022,”, of the words and figures “(vii) on or after October 1,

2022 but on or before December 31, 2023,”;

(2)

by the addition immediately after paragraph (vii), of the following paragraph:-

“(viii) on or after January 1, 2024, carries on or carries out any taxable activity in

Sri Lanka shall be required to be registered under this Act, if–

(a)

at the end of any taxable period, the total value of the taxable supplies of goods or services or goods and services of such person, made in Sri Lanka in that taxable period has exceeded fifteen million rupees; or

(b)

in the twelve months period then ending, the total value of the taxable supplies of goods or services or goods and services of such person, made in Sri Lanka has exceeded sixty million rupees; or

(c)

at any time, there are reasonable grounds to believe that the total value of the taxable supplies of goods or services or goods and services of such person, made in

Sri Lanka, in the succeeding taxable period, is likely to exceed fifteen million rupees or in the succeeding twelve months period is likely to exceed sixty million rupees.”;

(3)

in the third proviso to that subsection, by the substitution for the words “comes into operation.”

of the following:-

“comes into operation:

Provided further, for the purposes of paragraph (viii), the requirement for the registration shall arise from the date on which this (Amendment)

Act comes into operation.”.

s 4Sinhala text to prevail in case of inconsistency

In the event of any inconsistency between the Sinhala and Tamil texts of this Act, the Sinhala text shall prevail.