SVAT scheme is implemented with effect from April 1, 2011, in terms of section 2(2) of the Value Added Tax Act No, 14 of 2002.
It is required to obtain a registration number under the SVAT Scheme by submitting Form SVAT 01 - Application for Registration under Simplified VAT Scheme, along with other relevant documents, to the SVAT Branch of Inland Revenue Department (IRD).
(a). VAT Registration Process
- • Temporary Registration for VAT
- • Permanent Registration for VAT
- • Changes of Address of a Registered Person for VAT
- • Cancellation of SVAT Registration
- • Changes of Status from RIS to RIP or wise versa
- • Filling of quarterly VAT Returns with IRD
- • Process for SVAT Credit Voucher with IRD
- • Cancellation of differed VAT facility with all relevant authorities.
- • Process of VAT Refunds in coordination with IRD, Sri Lanka Customs and Board of Investment
- • Attending queries from any relevant authorities on behalf of the Company
- • Handling of any VAT audit with IRD
Combining accounting, tax and payroll compliance services is a very efficient and cost effective way for Centra Management to assist your business from inception and throughout the life of the Company’s operations
(b). VAT Administrative Process
Overseas Company in Sri Lanka
A Foreign Company can have presence in Sri Lanka through any of the following form:
- The Foreign Company may apply to the Registrar to be registered as an “Off Shore Company”. The Registrar may, having regard to national interest or in the interest of the national economy, issue a Certificate of Registration after the required fee is paid and a Certificate is produced from a bank that a sum of US $ 10,000/- has been deposited to meet its expenses in Sri Lanka. Such company is exempted from complying with any other provisions of the Company Act. 07 of 2007 of Sri Lanka.
Branch OfficeA Company incorporated outside Sri Lanka, which establishes a place of business within Sri Lanka need to seek registration with the Registrar of Companies within one month of the establishment of the place of business. Generally approval from the relevant ministry would be required before the registration can be completed.
Such a company has the same powers to hold lands in Sri Lanka as if it was a company incorporated in Sri Lanka.
Off Shore Company
Liaison /Representative Office
A Foreign company may have a Liaison office in Sri Lanka for the following purposes:.
- • Marketing intelligence, planning and coordinating business promotion activities;
- • Technical support and quality control;
- • Sourcing of raw material and manufactured products;
- • Not to engage in any import, export, trade or investment in Sri Lanka.
Holding & Subsidiary Company
A company is deemed to be a subsidiary of another company if:
- • the other company holds more than half of the nominal value of its equity share capital; or
- • Is a member of it and controls the composition of its Board of Directors.
- • A company is a Holding Company of another company if the other company is its subsidiary.
For more information on establishing a foreign company in Sri Lanka, Centra Management specialists can help you, contact our team.