A workshop on Value Added Tax (VAT) organized by KPMG was held on the 16th of January 2018 at the Movenpick Hotel. A detailed presentation was carried out by Ms Hasna Hassan, Director – Tax & Regulatory. The workshop covered the fundamental VAT principles including how to recognize the value and time of supply, the appellate procedure and other intricacies of VAT.
Hasna Hassan clarified issues pertaining to valuation of land and real estate issues raised by the audience.
In her presentation she covered the VAT specific rules applicable to the whole sale and retail industry including the calculation of turnover thresholds for registration. She also clarified queries raised in relation to the time of supply applicable for advance payments by customers in the context of hotels and condominium property owners.
VAT is the main indirect tax in Sri Lanka administered by the Commissioner General of Inland Revenue. VAT gathers the highest percentage of revenue for the Department of Inland Revenue, surpassing the revenue generated from Income Tax.
There is a notion prevalent that VAT rules are complex and burdensome for taxpayers to comply with compared to turnover tax however, the experience in other countries proves that VAT is the most popular tax as over 140 countries have adopted the same.
0 comments: