Lanka Business Online

Vat The Hell

Under the proposed laws it would be a serious offence to disclose the VAT component in invoices issued to customers who are not registered for VAT.

If a business issues a tax invoice to a customer who is not registered as a VAT payer with Inland Revenue, the firm will be slapped with a minimum Rs. 25,000 fine per invoice.

rnUnder the law general public will not know how much VAT they are paying, though all indirect taxes are always paid by the end consumer.

rnThe VAT tax implementation has now been deferred to the 1st of August after its legality was challenged in the Supreme Court.

rnThe accounting fraternity is roundly criticizing the provision saying it is an accounting as well as a legal nightmare.

rnTraders registered in the present GST system have one standard invoice showing the GST component they issue to all customers.

rnBut now they will have to maintain two sets of invoices.rnComputer systems will also need significant modifications to handle this unusual requirement.

rnTraders will a

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