VAT will be 15% from 2nd May 2016 onwards
Amendments to the Value Added Tax (VAT), Nation Building Tax (NBT) and
Share Transaction Levy (STL)
Value Added Tax (VAT), Nation Building Tax (NBT) and Share Transaction Levy (STL), shall
be amended as follows:
1. Value Added Tax (VAT)
(i) VAT rate shall be increased to 15%.
(ii) Threshold for the registration for VAT shall be Rs.3 million per quarter or Rs.12
million per annum.
(iii) Wholesale and retail trade (other than by a manufacturer or importer) shall be
liable for VAT and the tax shall be charged only on liable supplies. The restriction
on exempt supplies (deemed VAT) shall be removed. Threshold for the VAT
liability of wholesale and retail trade shall be reduced to Rs.3 million per quarter
or Rs.12 million per annum.
(iv) Following supplies which are currently exempted shall be liable for VAT.
a) Supply of Telecommunication services,
b) Import or supply of telecom equipment or machinery, high tech equipment
including copper cables for telecom industry,
c) The issue of licenses to local telecom operators by TRC,
d) Supply of healthcare services
e) Supply of goods or services to any specified projects other than housing
projects
(v) Amendments to the VAT Act shall be implemented with effect from 02.05.2016.
