Is SVAT registration compulsory?

asked Sep 27, 2013 in SVAT by Kamil
Is SVAT registration compulsory? or optional? Any benefit on this registration?

1 Answer

+1 vote
answered Oct 4, 2013 by Sumi123
edited Dec 30, 2013 by Vishan
It was optional at the introduction, but there was a proposal in 2013 budget to make the registration compulsory for those who meet the following criteria:

For a Registered Identified Purchaser (RIP)

(i) Any exporter or provider of zero rated service under section 7 of the VAT Act,
having zero rated supplies more than 50% of his total taxable supplies;
(ii) Registered person engaged in any Strategic Development Project referred to in
paragraph (f)(i) of PART II, or Registered persons engaged in any Specific Project
(ie..specified or special project identified by the Minister of Finance) referred to in
Paragraph (f)(ii) of PART II of First Schedule to the VAT Act;
(iii) Persons registered under Section 22(7) ,and who are entitled to claim input tax
under the Act
(iv) Manufacturers who supply goods manufactured in Sri Lanka (liable to VAT) to
exporters to be utilized for manufacture of goods for export, where the value of
such supplies and zero rated supplies are more than 50% of his total taxable
supplies
(v) Providers of value added services to exporters which results in the improvement of
the quality, character or value of any goods manufactured for export where such
supply of services more than 50% of his total taxable supply.
(vi) Suppliers of goods or services to the above persons where the total of such supply
is more than 50% of his total taxable supply.

For a Registered Identified Supplier –RIS
-Suppliers of any goods or services to above Registered Identified Purchasers(RIPs)

However still this budget proposals has not come into effect by way of an amendment to the Act or by a Gazette.

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