Importing a vehicle into Sri Lanka? Then you’ve probably come across a requirement that catches many by surprise — Temporary VAT Registration.
Whether you’re an individual importing a vehicle for personal use, or a business importing under a special permit or license, understanding temporary VAT (Value Added Tax) is crucial for a smooth customs clearance process.
In this post, we’ll walk you through what temporary VAT is, why it’s needed, and how to apply for it in Sri Lanka.
💡 What is Temporary VAT?
Temporary VAT is a short-term Value Added Tax registration issued by the Inland Revenue Department (IRD). It’s specifically meant for individuals or entities that do not qualify for full VAT registration but need to settle VAT obligations for a one-time transaction, such as importing a vehicle.
It is not a regular business VAT registration, and typically expires once the transaction is completed.
🧾 Why Do You Need Temporary VAT to Import a Vehicle?
When you import a vehicle into Sri Lanka — even for personal use — you are subject to import taxes, including VAT. The Sri Lanka Customs Department requires that this VAT component be accounted for through the IRD.
However, if you’re not a VAT-registered business, you can’t normally charge or pay VAT via the RAMIS portal. That’s where temporary VAT registration comes in.
It allows you to:
- Pay VAT at customs legally
- Generate a temporary VAT number
- Avoid delays in clearing your vehicle
📋 Documents Required for Temporary VAT (Vehicle Import)
To apply, you must submit the following to the Inland Revenue Department:
- ✅ Formal Request Letter
- Clearly mention that you’re requesting temporary VAT to import a vehicle for personal use.
- ✅ Taxpayer Identification Number (TIN)
- You must be a registered taxpayer in Sri Lanka.
- ✅ Copy of NIC / Passport
- ✅ Vehicle Import Documents
- Invoice, Bill of Lading, or Import Permit (if applicable)
- ✅ Proof of Address
- Recent utility bill or lease agreement
- ✅ Any communication from Sri Lanka Customs (if requested)
📝 Sample Reason for Application
“I am importing a vehicle for personal use and have been informed by Sri Lanka Customs that a temporary VAT registration is required in order to process the VAT payment at the point of import clearance.”
📍 Where to Submit Your Application
You can submit your application via:
- In-person at the Inland Revenue Department, Colombo, or
- Through your authorized customs clearing agent
Be sure to clearly mark your request as “Temporary VAT Registration – Vehicle Import”.
📆 How Long Does It Take?
Processing time can vary depending on your documentation and the IRD’s workload, but typically it takes 3–5 working days. It’s best to apply early — especially if your vehicle has already arrived or is in transit.
❗Important Tips
- This VAT registration is valid only for the specific vehicle import.
- You are not allowed to use this VAT number for any other business or commercial transactions.
- After the vehicle is cleared, the temporary VAT number becomes inactive.
✅ Final Thoughts
The process of importing a vehicle into Sri Lanka involves several tax and compliance requirements, and temporary VAT registration is one of them. Though it may seem like an extra hurdle, it’s a relatively straightforward process if you have the right documents.
By understanding this step in advance, you can avoid unnecessary delays at customs and ensure your import process is handled smoothly.
If you’re unsure about any part of the process, it’s always best to consult with a customs clearing agent or contact the Inland Revenue Department directly.
