Every service provider and trading establishment with a daily turnover exceeding Rs. 100,000 must register for Value Added Tax (VAT) and the Social Security Contribution Levy (SSCL) effective from July 1, according to Senior Deputy Commissioner of Inland Revenue for the Nuwara Eliya District, E.D. Karunaratne.

He made these remarks while participating in an awareness workshop organized for business owners and service providers in the Nuwara Eliya District.

Karunaratne stated that the annual turnover threshold, which was previously set at Rs. 60 million, has now been reduced to Rs. 36 million. 

Accordingly, service providers, wholesale and retail traders, and manufacturing businesses with a taxable annual turnover of Rs. 36 million or above — equivalent to daily sales exceeding Rs. 100,000 — are required to register for VAT and SSCL.

He further stated that the registration process can be completed online or through any branch office of the Inland Revenue Department, with all necessary facilities made available for this purpose.

"Previously, the threshold for VAT and SSCL was Rs. 60 million per annum. Since direct tax revenue is insufficient, these indirect tax thresholds have been reduced, resulting in a wider tax base. Accordingly, to safeguard government revenue, the indirect tax threshold has been lowered to Rs. 36 million. All these taxes are collected on behalf of the public. The tax is ultimately paid by consumers. The role of the business community is to collect this tax and remit it to the government. Therefore, registering for these taxes is essential," he said.