New VAT in Sri Lanka?
 

I've been reconfirming all my booking for our trip to Sri Lanka next month. One lodging (Leopard Safaris. who camp just outside of Yala) advised me there is a new 15% vat (which they claim is refundable) they must impose.. No other hotel has notified me of this VAT. Any one know if its on the up and up? In my travels, where there is a VAT on lodging, its never been refundable.
As to the danger at Yala we were planning to cancel this reservation if local intel at the time of our visit advised against going. So we've paid a 15% deposit that I consider an "option" on this two night stay.

Hi Robbie. Run a Google Search. It appears that your company is being totally kosher. Sri Lanka has just brought down a new budget.

http://www.lankabusinessonline.com/f...?nid=366738399

there are many others - just look in 'News' when you search.

I guess that VAT is somehow like in BKK, where you pay it then, maybe, get the refund at the airport. Probably, because you hadn't pre-paid that section, the VAT is applicable.

The way I read that story on the link which dogster has provided is that VAT is being REDUCED to 12% from 15%. And the article says that the new lower VAT rates do not take effect until January l, 2009, which would not apply to your trip in December 2008. The article says (in part) as follows:

<i>“The <b>Value Added Tax</b> and Port and Airport Development Levy <b>will be effective from January 1, 2009</b>. The <b>present VAT rate</b> of 15 percent <b>will fall to 12 percent</b> but the 20 percent VAT on motor vehicles, luxury goods and liquor will continue to be applicable. …”</i>

I found a similar article at http://www.colombopage.com/archive_0...6130136RA.html which also indicated that VAT was being <i>reduced</i>, not increased. There did not seem to be any indication that there was a special VAT for lodging.

As the OP seems to be aware, VAT on services consumed in-country, like lodging, are generally not refundable. Services like guide services would also be consumed in-country so would not be refundable. The only part of VAT which would be refundable would be for goods which you are purchasing and taking out of the country unused.

Is the camp asking you to pay the VAT at this time? That would be most unusual to be asked to pay VAT on services which have not been provided. Otherwise, perhaps you can get better information. You might want to enquire from the camp as to the precise name of the new VAT they claim they need to charge you, and why they believe it is refundable, and how you go about getting a refund.

The first place you might want to look is the website for the Sri Lanka Inland Revenue Department at http://www.inlandrevenue.gov.lk/ and especially http://www.inlandrevenue.gov.lk/vat.html. Links to local Sri Lanka newspapers are below
Daily Mirror – www.dailymirror.lk
Sunday Times – www.sundaytimes.lk
Sunday Observer – www.sundayobserver.lk
Daily News– www.dailynews.lk
The Island – www.island.lk

I stand corrected by Cicerone, who proves, once again, why she is acknowdged as the font of all wisdom on matters sub-continental.
Incredible breadth of knowledge.

But I helped a little bit. So the mystery returns. Let us know what happens.

My serious reading on this matter begins tomorrow with thanks to Dogster and Cicerone for the source materil.

No dogester, I don't have more knowldge, just some experience with India-speak (which is also Sri Lanka-speak): as you are undoubedly learning yourself, a somewhat different way of using the language!!

Cicerone, I am AMAZED by what you know, already! But, yup, slowly, slowly I'm learning the ropes. I'm a long way behind you. Seriously.