Every person carries on or carries out any taxable activity in Sri Lanka shall be required to be registered if, Taxable supply of goods and services in any taxable period of one month or three months, as the case may be, has exceeded five hundred thousand rupees or has exceeded Rs. one million eight hundred thousand rupees in twelve months period

 Value added tax rates ( VAT )

5% on essential goods and such goods are as follows,

Potatoes, Onions, Dried Fish, chilies, Jewellery, high-tec medical medical equipments or machinery used for the manufacture of tickets issuing machinery

20% on Luxury items and items are as follows,

• Air conditioning machines, Refrigerators, Dish washing machines, vacuum cleaners/Floor polishers, Kitchen waste disposers, food grinders and mixtures, Ovens and cookers, hair dryers/ hair dressing equipments, Video player, Cameras, Radio, cassette and music systems, Television, motor vehicles other than motor cycles, bicycles, three wheelers and passenger transport buses, lorries, trucks and other vehicle used for the transport of goods, watches/clocks, musical instruments, equipments for games, jewellery, aerated water other than ginger, nelli or ayurvedic plants, liquor including ethyl alcohol and other sprits.
• Supply of services by hotels, guest houses, restaurants or
  Similar institution so far as such services are provided for wedding receptions and other receptions which include the hiring of halls for the holding of wedding receptions or other reception other than services providing for the holding of professional conferences, seminars or similar events.

15% Rate on other goods and services other than exempt supplies