Value added Tax in Srilanka

Value added Tax in Srilanka


Value added tax is a method of indirect taxation on a consumer spending in a domestic Economy. As it name suggests it is a tax on added value.

1 VAT suffered on purchase as it known as input tax.
2 VAT charged on sales known as output tax
3 if output tax exceeds input tax we have liable for government. its called tax payable
4 if input tax exceeds output tax, that’s payable by the government to us

----------------------|Process |…………………………………
Input Output
-------------Value addition---------------