5. Amendment of section 10 of the principal enactment

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

Section 10 of the principal enactment as last amended by the Value Added Tax (Amendment) Act, No.15 of 2009 is hereby further amended as follows:—

(1)

in item (ii) of subsection (1) of that section, by the substitution for the words and figures “on or after

January 1, 2009 carries on or carries out” of the words and figures “on or after January 1, 2009, but prior to

January 1, 2013 carries on or carries out”;

(2)

immediately after paragraph (c) of item (ii) of subsection (1) of that section , by the insertion of the following new item :—

“(iii) on or after January 1,2013 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 of one month or three months, as the case may be, 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 of one month or three months, as the case may be, has three 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 twelve 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 in Sri Lanka, in the succeeding one month or three months taxable period, as the case may be, is likely to exceed three million rupees or in the succeeding twelve months period is likely to exceed twelve million rupees: ”.

Act, No. 17 of 2013

(3)

In subsection (2) of that section, by the substitution for the words and figures “shall not include the supplies of any wholesale or retail trading activity excluded from the payment of tax under section 3.” of the words and figures “shall not include the value of supply of goods purchased locally without any process in a wholesale or retail trading activity unless the value of total supplies for a period of three months in one calendar year including the supplies excluded under section 2 or exempted under PART II of the

First Schedule to the Act, is not less than rupees five hundred million.”.

Read on from s 6