The government has issued VAT (Amendment) Bill dated 10 February 2020 on recent VAT changes.
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Summary:
- Clause 2: This clause amends section 3 of the Value Added Tax Act, No. 14 of 2002 (hereinafter referred to as the “principal enactment”), and the legal effect of that section as amended is to increase the amount for Vat liability on wholesale and retail sale.
- Clause 3: This clause amends section 10 of the principal enactment and the legal effect of that section as amended is to increase the registration threshold for VAT liability to Rs. 75 million for a quarter and Rs. 300 million per annum and the consequential changes relating thereto.
- Clause 4: This clause amends section 12 of the principal enactment and the legal effect of that section as amended is to provide for voluntary registration under this Act, for persons as described in that section.
- Clause 5: This clause amends Part II of the First Schedule to the principal enactment in order to exempt the VAT imposed on the supply of condominium housing units and information technology and enabled services.
