August 20:  The Inland Revenue Department has introduced amendments to the current regulations governing the payment of Value Added Tax (VAT). Under the updated provisions, companies engaged in business turnovers exceeding Rs 10 million annually will be required to submit their VAT details on a monthly basis.

Conversely, companies involved in business transactions amounting to less than Rs 10 million annually will need to provide their VAT details on a quarterly basis. 

The department announced on Friday that it has revoked the previous regulations allowing industries like cement, hotels, and cinema halls exceeding business transactions of Rs 10 million to report their VAT details on a quarterly basis.

Instead, industries such as cement, hotels, and cinema halls, which conduct annual business transactions surpassing Rs 10 million, are now required to submit their VAT details on a monthly basis, starting from the first month of the fiscal year 2023/2024.

According to the Inland Revenue Department, companies and industries that conduct business transaction of up to Rs 10 million will have to submit the details of the Value Added Tax(VAT) on a quarterly basis from the first month of the fiscal year 2023/2024.

The recent amendment specifies that taxpayers with yearly turnovers below Rs 10 million, can present their first-quarter VAT details until Mansir 25, the second quarter's details until Chaitra 25, and the third quarter's details until Shrawan 25.

For small taxpayers with turnovers under 10 million, there is an option to submit VAT details monthly. If they choose to do so, they are required to notify the Inland Revenue Department or the relevant tax office within 15 days.