Value Added Tax Act, No. 14 of 2002 (VAT Act) is amended by the Value Added Tax (Amendment) Act, No. 9 of 2021 as certified by the Speaker on May 13, 2021. The amendments are operative from the date of certification of the amendment Act unless different dates of operation are specifically stated in the respective provisions.

Any amount retained by the Employees’ Trust Fund (ETF) Board, any Provident Fund or Employer (hereinafter referred to as the “Retainers”) as per the Guideline published by Circular No. SEC/2020/02 of the Commissioner General of Inland Revenue, dated 18.02.2020 as Income Tax on terminal benefits due for the retiring employees, for which such employees were required to produce a Direction from the Inland Revenue Department within 90 days from the date of such retention of Tax,

The public notice number PN/VAT/2021-04 issued on 28.04.2021 has been amended as follows.

Validity of the last issued extension letters with regard to Credit Vouchers (CV) due against the VAT deferred at the Customs/BOI under deferment facility has been further extended up to September 30, 2021.

Any amount retained by the Employees’ Trust Fund (ETF) Board, any Provident Fund or Employer (hereinafter referred to as the “Retainers”) as per the Guideline published by Circular No. SEC/2020/02 of the Commissioner General of Inland Revenue, dated 18.02.2020 as Income Tax on terminal benefits due for the retiring employees, for which such employees were required to produce a Direction from the Inland Revenue Department within 90 days from the date of such retention of Tax, and if that 90 days period expires on or after May 11, 2021, such 90 days period for retention of Tax deducted by the Retainers is extended till June 30, 2021, considering the COVID-19 pandemic situation prevailing in the country.

The Online Tax Payment Platform (OTPP) introduced by Inland Revenue Department (IRD) functions from 08.02.2020 to make tax payment with the collaboration of below mentioned banks, in addition to the usual tax payment methods.

Now, Bank of Ceylon provides OTPP facility in addition to the banks initially interfaced with IRD for this purpose. This facility will be extended by connecting all banks to give an efficient service to taxpayers in future.

Taking into account of the COVID - 19 pandemic situation in the country, period of validity of Temporary VAT Registration issued on or after 01.01.2019 for import or export, which gets expired on or before September 30, 2021 as per the certificate, has been extended up to September 30, 2021.

Temporary registration is issued only to persons who engage in imports and exports of goods but not registered for permanent VAT. Others including clearing agents are not required to obtain temporary registration unless they engage in imports or exports.

As per the National budget of 2021 presented in Parliament, following new tax proposals have been made. These proposals will be implemented after formal amendment to the Inland Revenue Act No. 24 of 2017 (IRA).

Inland Revenue Department (IRD) has introduced Online Tax Payment Platform (OTPP) with effect from 08.02.2020, to make tax payment with the collaboration of below mentioned banks, in addition to the existing tax payment methods.

Due to the current situation of COVID-19 pandemic and imposed restrictions under health guidelines, we are unable to conduct awareness programs as we did before.

Taking into account of the COVID – 19 pandemic situation in the country, importers and exporters of goods are requested to obtain Taxpayer Identification Number (TIN) and Value Added Tax Registration (temporary or permanent) through e – Services provided in Inland Revenue web portal.

As the approval granted by the Cabinet of Ministers and instructed by the Ministry of Finance on December 17, 2020,

Taking into account of the COVID – 19 pandemic situation in the country, period of validity of Temporary VAT Registration issued on or after 01.01.2019 for import or export, which gets expired on or before June 30, 2021 as per the certificate, has been extended up to June 30, 2021.

Considering the prevailing COVID19 pandemic in the country and the multiple requests made by the stakeholders to the Ministry of Finance, the requirements to submit the TP documentations of Master Files and Country by Country Report (CbCR) for the Year of Assessment 2019/2020, in terms of Regulations of the TP Gazette No 2104/4 dated December 31, 2018 are to be commenced from the year of assessment 2020/2021, subject to the formal approval from the Ministry of Finance.

Any amount retained by the Employees’ Trust Fund (ETF) Board, any Provident Fund or Employer as per the Circular No. SEC/2020/02 of the Commissioner General of Inland Revenue, dated 18.02.2020 as income tax on terminal benefits due for the retiring employees for which such employees were required to produce a Direction from the Inland Revenue Department (IRD) within 90 days from the date of such retention of tax, and if that 90 days period expires on or after 06-10-2020

It is with great pleasure that I present the budget speech 2021, which focuses on strengthening the 2021-2023 medium term programme of poverty alleviation and economic revival as envisaged within the “Vistas of Prosperity and Splendour”, the policy framework of the government of HE the President Gotabaya Rajapaksa.

Taking into account of the prevailing Covid-19 pandemic situation in the country, All Secretaries to the Ministries, Chief Secretaries to the Provinces, Districts Secretaries/Govt. Agents, Heads of the Departments/Statutory Bodies/Govt. Corporations/Govt. Undertakings, Chief Accountants and VAT Registered Persons are informed to treat that the validity of all VAT Active Certificates (which are expiring on or after October 01, 2020) issued by the Inland Revenue Department to the VAT registered persons are extended until December 31, 2020.

According to the provisions of the Inland Revenue Act, No. 24 of 2017 (IRA) every person, who is liable for income tax shall file a return of income not later than eight months after the end of each year of assessment. Therefore, last date to furnish the Return of Income for the year of assessment 2019/2020 is November 30, 2020.

Taking in to account the prevailing situation in the country, all taxpayers are requested to avail the following service of the Customer Information Update Unit via e-Services or e-Mails.

Taking into account the prevailing situation in the country, the following arrangements have been made to issue Tax Residency Certificates (TRC) by the Inland Revenue Department;

To adhere the current situation prevailing in the country, Central Document Management Unit (CDMU) of IRD has instituted the following steps to receiving the documents (Returns, Appeals, Objections, etc.) from taxpayers.

Taking into account the prevailing situation in the country, the following temporary arrangements have been made by the Customer Supporting & Promotion Unit, to provide the services through e-Services, e-Mails and telephone calls.

As instructed by the Ministry of Finance on September 11, 2020, following income tax exemption has been proposed and granted subject to the formal amendment being made to the Inland Revenue Act No. 24 of 2017.

Taking in to account the prevailing situation in the country (Covid -19 pandemic, Second wave), following Tax Returns can be submitted up to the dates mentioned below without subjecting to late filing penalties as per the respective enactments.

Taking into account of the prevailing situation in the country, all divisional secretaries and liquor license holders are informed to treat that the validity period of all tax clearance certificates relating to liquor licenses (which will be expired before December 31, 2020) issued by the Inland Revenue Department to the liquor license holders as extended until March 31, 2021.