Sri Lanka has reduced value added tax on condominium housing units to 6% and input tax relating to such supply will be counted at 5%.

VAT will not be charged if the unit price is below 25 million rupees.

VAT will also not be charged where the agreement to sell was executed under the Notaries Ordinance before the VAT Amendment Act became effective, or where certificates of conformity was obtained before the effective date.

The supply of goods by the construction contractors to their overseas projects will be treated as exports.

The VAT payment date will be on the 20^th month following the month relevant to such payment.

Meanwhile, according to the VAT act; the piece based VAT rate applicable on domestic sale of certain garments by the export oriented BOI companies will be increased from Rs.75/- to Rs.100/-.

The locally produced Rice Bran Oil, manufactured out of locally produced rice will be exempted from VAT.

The Minister of Finance will be authorized to prescribe the basis for chargeability of VAT of certain goods specified by the Minister by regulations.