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IRD Conducts Raids on Businesses Charging Illegal VAT, Seizes Documents and Computers

  • The Inland Revenue Department (IRD) is cracking down on businesses charging VAT without being VAT-registered.
  • Customers affected by unlawful practices can complain directly to the IRD Commissioner General.
  • IRD officials raided a business entity in Colombo after a customer complaint and seized documents and computers.
  • Police assistance was required to enter the premises of the business entity.
  • A separate audit inquiry has been launched to determine if the entity maintained VAT files and paid relevant taxes.
  • Legal action and penalties can be initiated against non-VAT registered entities.
  • Individuals who were wrongfully charged with VAT can send relevant details to the IRD Commissioner General for action.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


VAT news
VAT news