ird.gov.lk Simplified Value Added Tax SVAT Scheme Sri Lanka : Inland Revenue Department

Name of the Organisation : Inland Revenue Department (ird.gov.lk)
Type of Announcement : Simplified Value Added Tax SVAT Scheme
Country : Sri Lanka
Website : http://www.ird.gov.lk/Site/svat.html

IRD Simplified Value Added Tax Scheme

SVAT scheme is administered by the Department of Inland Revenue and implemented effective from April 1, 2011 in terms of section 2(2) of the VAT Act No.14 of 2002. You may download the guideline to understand what the scheme is.

Related : Sri Lanka Inland Revenue  Registration For VAT : www.statusin.org/8978.html

Guidelines of The Simplified Value Added Tax (SVAT) Scheme has been modified with effect from 01/08/2012 under Circular No.2012/3.

The following documents are required to be submitted for obtaining a registration number Under Simplified VAT Scheme.

1. Application For Registration (SVAT 01) – Under Simplified VAT Scheme (01/08/2012)

2. INDIVIDUAL / PARTNERSHIP BUSINESS :
Certificate of Registration of the Business,
Photo Copy of the National Identity Card of the applicant.
(in the case of a proprietorship, applicant should be the proprietor and in the case of partnership , applicant should be the precedent partner), and
Documents mentioned under item 4, if applicable.

3. COMPANIES :
Certificate of Incorporation,
Photocopy of the National Identity Card of the applicant (applicant should be a Director who has been authorized by the Board as the applicant. A board resolution must be submitted in that regard).
Documents mentioned under item 4, if applicable.

4. GENERAL :
(a). Applicant himself is required to be present for obtaining the registration However, in the case of companies, the applicant or an authorized representative of the company is required to be present for the purpose of SVAT registration.
Please note that the Registered identified Purchaser status is accorded only after visiting the business place.

If the status is to be accorded as Registered Identified Supplier, copies of audited statements of accounts, copies of bank accounts or a letter from the Gramaseva Niladari certifying by the Divisional Secretariat may be requested to be submitted.

(b). A letter of authority giving permission to collect the certificate (If the certificate to be handed over to a person other than the applicant )

(c). Documents to be attached :
** TIN Certificate
** VAT registration Certificate
** BOI Registration Certificate, if applicable
** TQB Registration Certificate, if applicable
** EDB Registration Certificate, if applicable

** Photo Copies of National Identity Cards of two persons who are authorized to obtain Credit Vouchers from the Department. (If applicable)
** A copy of the approval, if you are a registered person engaged in any Specific Project referred to in sub paragraph (ii) of paragraph (f) of PART (II) of First Schedule.

** A copy of the gazette notification issued under Strategic Development Act No. 14 of 2008 and a copy of the BOI Agreement, if you are a registered person engaged in any Strategic Development Project referred to in sub paragraph (i) of paragraph (f) of PART (II) of First Schedule.

** A copy of the approval, if you are a person registered under Section 22(7).
** If you are a service exporter under section 7(b) (iv) of the Act, submit relevant documentary proof.

Postal Address

Inland Revenue Department
No – 81, Sir Chiththampalam A. Gardinar Mawatha,
Colombo 02,
Sri Lanka.

Additional Simplified Procedure

The Simplified Value Added Tax (SVAT) Scheme in Sri Lanka is a simplified version of the Value Added Tax (VAT) regime that is applicable to small businesses. The SVAT Scheme was introduced in 2011 to reduce the compliance burden on small businesses and to make it easier for them to register for VAT.

Under the SVAT Scheme, businesses with an annual turnover of less than LKR 100 million are not required to register for VAT. However, businesses that choose to register for the SVAT Scheme are subject to a simplified set of rules and regulations.

The main features of the SVAT Scheme are:
** A single tax rate of 8%.
** Only taxable supplies are subject to VAT.
** A simplified record-keeping system.
** A simplified filing system.
** A simplified payment system.

Businesses that register for the SVAT Scheme are required to submit a monthly return and pay the VAT due within 15 days of the end of the month. The VAT due is calculated on the basis of the taxable supplies made during the month.

The SVAT Scheme is a good option for small businesses that want to comply with the VAT regime but find the standard VAT regime too complex. The SVAT Scheme is also a good option for businesses that make a small amount of taxable supplies.

Here are some of the benefits of registering for the SVAT Scheme in Sri Lanka:
** Reduced compliance burden: The SVAT Scheme is a simplified version of the VAT regime, which means that businesses that register for the SVAT Scheme have a reduced compliance burden.
** Easier registration process: The registration process for the SVAT Scheme is easier than the registration process for the standard VAT regime.
** Simplified record-keeping system: The record-keeping system for the SVAT Scheme is simplified, which makes it easier for businesses to keep track of their VAT transactions.
** Simplified filing system: The filing system for the SVAT Scheme is simplified, which makes it easier for businesses to submit their VAT returns.
** Simplified payment system: The payment system for the SVAT Scheme is simplified, which makes it easier for businesses to pay their VAT dues.

Note:
If you are a small business in Sri Lanka and you want to comply with the VAT regime, the SVAT Scheme is a good option to consider. The SVAT Scheme is a simplified version of the VAT regime that can help you reduce your compliance burden and make it easier to register for VAT.