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Locally produced milk, yogurt exempted from VAT under new amendment
Colombo, April 17 (Daily Mirror) - The Inland Revenue Department (IRD) declared that locally produced liquid milk and yogurt are now exempt from Value Added Tax (VAT), following the enactment of the Value Added Tax Amendment Bill in Parliament.
The bill, which was approved on April 9 and received the formal assent of Speaker Dr. Jagath Wickramaratne on April 11, officially came into effect on the same day. As a result, VAT on liquid milk and yogurt has been removed from April 11 onward.
According to the IRD, to qualify for the exemption, fresh milk must contain at least 50 percent content.
In a statement, the IRD also noted that the VAT exemption extends to naphtha supplied by the Ceylon Petroleum Corporation to the Ceylon Electricity Board for the purpose of electricity generation.
While certain commodities have been granted relief, the new amendment introduces VAT on digital services provided by non-resident entities. Starting October 1, digital services offered to Sri Lankan consumers through electronic platforms by foreign providers will be subject to VAT.
Furthermore, the Act mandates that all individuals or businesses involved in the import or export of goods for commercial purposes must register under the new VAT provisions.
The Inland Revenue Department has taken steps to implement these changes in line with the updated legislation.
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