A temporary VAT registration in Sri Lanka is a short-term registration granted to businesses that are not yet eligible for permanent VAT registration but need to engage in VAT-related activities, primarily import and export.
Why is it Needed?
- Import and Export Activities: To facilitate customs clearance for export and import goods,
How to Obtain Temporary VAT Registration:
By following below steps and providing the required documentation, you can obtain a Temporary VAT registration to facilitate your import, export, and re-export activities through Sri Lanka Customs.
1. Online Application
- Visit the Inland Revenue Department (IRD) e-services portal.
- Fill out the online application form for temporary VAT registration.
- Provide necessary documents, including:
- For Imports: Bill of Landing or Airway Bill
- For Exports: Purchase Order or Purchase Agreement
2. Manual Application
- Download the temporary VAT registration form from the IRD website.
- Fill out the form and submit it along with required documents to the nearest IRD regional office.
Important Considerations:
1. Duration: Temporary VAT registration is typically valid for a specific period, usually 14 days for Imports.
2. Renewal: To continue VAT-related activities beyond the initial period, you may need to get the new temporary registration or apply for permanent registration.
3. Temporary VAT provided to persons undertaking following activities shall not be required henceforth as per
the letter (CGIR/2020/2-2) of Commissioner General of Inland Revenue to Director General of Customs,
dated 23.11.2020.
• Customs Clearance and related activities
• Ship agents and sub agents
• Clearance agencies and wharf representatives
• Entities registered with the Board of Investment (BOI) and undertake import and export activities
• Warehouse operators
• Courier agents
Additional Tips:
- Consult a Tax Professional: Seek advice from a qualified tax professional to ensure compliance and optimize your tax strategy.
- Stay Updated: Keep yourself updated with the latest VAT regulations and changes in tax laws.
- Accurate Record-Keeping: Maintain accurate records of all VAT-related transactions to facilitate audits and tax filings.
By understanding the process and requirements for temporary VAT registration, businesses in Sri Lanka can effectively manage their VAT obligations and streamline their operations
