PRESS RELEASE – The Inland Revenue Department wishes to inform the general public of the recent legislative amendment to the Value Added Tax (VAT) Act as per Statutory Instrument (SI) No.5 of 2016.
Effective 14th March, 2016, the VAT threshold will increase to $400,000 from the previous threshold amount of $180,000.
As such, some VAT registered businesses will no longer be required to charge and collect VAT on behalf of the Government and these businesses will be de-registered.
The Comptroller, Mrs Sophia Henry indicates that in order to facilitate the de-registration process IRD Officers will be contacting all businesses that are currently below the threshold.
Representatives of businesses also have the option of visiting any of the IRD locations to discuss their registration status.
The de-registration request forms can be obtained from the VAT website. www.vat.gov.lc
Requests for voluntary registration and continued registration, from persons falling below this new threshold, will receive appropriate consideration to ensure that small manufacturers and other sensitive businesses are not disadvantaged.
Approval however will be subject to adherence to the provisions of the tax laws administered by the Inland Revenue and Customs Departments.
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