VAT increase & NBT effective from Nov. 01
October 27, 2016 02:40 pm
The Value Added Tax (VAT) increase and Nation Building Tax (NBT) will come into effect from November 01, the Ministry of Finance said.
The VAT increase from 11% to 15% was approved with the passing of the VAT (Amendment) Bill in parliament yesterday (26).
As per the amendments, the VAT rate will also affect telecom services, tobacco, air ticket fees and private medical services excluding diagnostic tests, dialysis and OPD services.
Meanwhile the threshold on retail and wholesale trade has been increased to greater than Rs 50 million per year.
The Nation Building Tax rate is 2% and will remain unchanged.
NBT is payable by every person (individual, Company, body of persons) or partnership who imports any article (other than any excepted article and any article in the personal baggage) into Sri Lanka, or carries on the business of manufacturing of any article other than any excepted article; or carries on the business of wholesale or retail sales of any article (other than such sale by the manufacturer of that article to whom the NBT provisions are applicable as the manufacture and liable under item (2) above, or carries on the business of providing a service of any description, including the business of banking or finance, other than any excepted service.
See below for the list of goods and services exempted from the VAT increase:
List of VAT Exempted Goods & Services by deranapics on Scribd
