IRD Notice on Inactivation of VAT Registration

As approved by the Cabinet of Ministers and instructed by the Ministry of Finance, Value of taxable supplies for the purpose of registration for VAT (VAT registration threshold) will be increased with effect from January 01, 2020, up to 75 million rupees per quarter or 300 million rupees per annum subject to formal amendments to the Value added Tax Act, No. 14 of 2002, be passed in Parliament.

Accordingly, VAT Registration of persons of whose taxable supply has never exceeded Rs.75 million for any taxable period ended prior to December 31, 2019, will be inactivated with effect from January 01, 2020 and a list of such inactivated VAT registered persons with the details of name of the person and VAT registration No. is published in the Inland Revenue web portal which could be downloaded via: www.ird.gov.lk

Therefore, such inactivated persons are not permitted to collect VAT on the supplies made on or after January 01, 2020. Further, such persons are required to surrender their VAT Registration Certificate to the Commissioner, Customer Information Update Unit of the Inland Revenue head office or any nearest regional office.

However, VAT collected prior to January 01, 2020, shall be paid on or before January 20, 2020 and the VAT return shall be submitted for the period as usual.

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