- Sri Lanka introduced a risk-based refund scheme (RBRS) for VAT refunds, effective from Oct. 1.
- RBRS replaces the simplified VAT regime and applies to exporters and those supplying over 50% to strategic or specified projects.
- Refund claims are categorized as low, medium, or high risk based on compliance and audit history.
- Refunds are paid directly to the taxpayer’s registered bank account; detailed documentation must be submitted via the IRD e-service portal.
- Refunds can be withheld or rejected for non-compliance, inaccurate information, or outstanding taxes, with penalties for undue claims.
Source: news.bloombergtax.com
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.
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