The necessary arrangements are being made to legislate bringing the current threshold for paying Value Added Tax (VAT) of Rs. 80 million per annum to the annual turnover, down to Rs. 60 million soon, said the State Ministry of Finance Ranjith Siyambalapitiya.
He made these remarks speaking to the media following the participating in a programme held in Yatiyantota on Wednesday (17) evening.
State Minister Siyambpalitiya added that any business or industry with a turnover of Rs. 80 million per year is required to be registered for VAT and displaying the VAT registration certification is necessary.
According to the VAT Act No. 14 of 2002, a person who is registered for VAT must display the VAT registration certificate of his company to his client, customer or anyone who collects VAT.
Also, the Inland Revenue Department (IRD) can take legal action against those who do not display VAT certificates as mentioned in the mentioned VAT Act.