Change of VAT Rates -w.e.f 01.12.2019

As per the Gazzette Notification issued by Minister of Finance on 29th November 2019 ,VAT rates applicable w.e.f 01.12.2019 are as follows.

• On the supply of services by a hotel, guest house, restaurant or other similar businesses providing similar services, registered with the Sri Lanka Tourism Development Authority, if sixty per centum (60%) of the total value of the inputs are sourced from local supplies/sources, at the rate of zero per centum (0%),
• on the supply of financial services, at the rate of fifteen per centum (15%),
• on import of goods set out in the H.S. Code and description specified in Column I and II of Schedul of the Extraordinary Gazette Notification No.2095/20 dated November 1,2018, at the rate specified in the corresponding entry in column III of such Schedule, and
• on the import and/or supply of goods or supply of services, other than supply of services/import of goods as referred to under sub-paragraphs (a) (b) and (c) of this paragraph, at the rate of eight per centum (8%).

The orders made under Section 2A of Value Added Tax Act, No. 14 of 2002, as amended by Act, No, 06 of 2005 and published in the Extraordinary Gazette Notifications No.2095/19 dated November 01,2018, No. 2125/69 dated June 01,2019 and No.2147/59 dated October 31, 2019 are hereby rescinded.

Accordingly reduced rates applied to below categories up to 30th November 2019 also will be revised to 8% w.e.f 01st December 2019.

1. (Wood sawn or chipped lengthwise,Sheets for veneering (including those obtained by slicing  laminated wood), for plywood or for similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or en-jointed, of a thickness exceeding 6mm)- 5% ( No.2095/19 )
2. (Supply of services by a hotel, guest house, restaurant or other similar businesses providing similar services, registered with the Sri Lanka Tourism Development Authority,Supply of services in respect of inbound tours, by a travel agent registered with the Sri Lanka Tourism Development Authority)-7%(No. 2125/69)
3. Services being the supply of residential accommodation by way of sale of Condominium housing unit -6% (No.2147/59)

This Order shall come in to effect from December 01,2019.