Value added Taxes payable by the importers?

The Value Added Tax (VAT) payable by importers in Sri Lanka is charged, levied, and collected as if it is a customs duty on all goods imported into Sri Lanka. This means that VAT is applied to the importation of goods in a similar manner to how customs duties are applied, and all imported goods are considered dutiable and liable for VAT.

Additionally, registered persons who import goods as raw materials for the purpose of manufacturing and exporting the goods manufactured are entitled to claim input tax credits for the VAT paid on such imported goods. This is to encourage manufacturing for export by allowing the recovery of VAT as an input tax credit, which can offset against the output tax liability.

It’s important for importers to be aware of the specific VAT rates applicable to their imports, as these rates can change over time and may vary depending on the type of goods imported. Importers should also be aware of any exemptions, deferments, or special schemes that may apply to their imports, as these can affect the amount of VAT payable.

Now you can get free answers to Sri Lanka Tax quests by Registing with LankaTAX AI:

Please Login to Comment.