Importing Vehicle - How To Register For Vat

[dpbatagoda]

Hi,

Has any of you know how to register for VAT?

I am importing a vehicle from Japan to resell and I am importing it under my name(not a company it's a personal import). As you know if the buyer is going to put a lease or he has VAT registered, then he can claim the VAT back.

How can I get this VAT back to my buyer?

Your responses are highly appreciated.

[Crosswind]

Hi,

Has any of you know how to register for VAT?

I am importing a vehicle from Japan to resell and I am importing it under my name(not a company it's a personal import). As you know if the buyer is going to put a lease or he has VAT registered, then he can claim the VAT back.

How can I get this VAT back to my buyer?

Your responses are highly appreciated.

Your question is a bit unclear to me. Those who register for VAT are not individuals but businesses (which includes sole proprietorships) who are eligible for charging VAT from the end-customer. In any case I haven't actually dealt with VAT for leasing purposes so I don't know whether it's possible to claim VAT if you are leasing a vehicle. Anyways let's assume that you are running a business with the required minimum taxable turnover (LKR 2.5mn) and this is the general procedure.

Before registering for VAT, you need to go to Inland Revenue and get a TIN number. That's what we call a tax file. You need to take your BRC copy, Form 40/41/48, any import export licenses, NIC of the directors etc. Please take originals and photocopies. If you are an individual, you can still register for a TIN number. Just take your ID and a copy with any import licenses/permits that you have.

Once you get the TIN number, go to the second floor and get a VAT form 11. Now this one has to be signed by the GS and the Divisional Secretariat. You need to fill it up and take all the documents above (BRC, Form 40/..., ID copies of directors, monthly bank statements, details of import export activities and any other supporting documents that you have and submit the form. After a few decades, they will issue the VAT number for you.

Once you get the VAT number, you can charge VAT from the end customer and deduct any VAT that you pay.

VAT Branch phone number is 2338924

The following PDF gives a good intro about the who VAT system. But some information (especially taxable goods, exemptions and VAT rates can be outdated) http://www.inlandrevenue.gov.lk/taxtypes/VATguide.pdf

Edited March 5, 2011 by Crosswind