Following a number of complaints received by the IRD regarding the illegal charging of VAT, the IRD took legal action against a business that had illegally charged the tax without being registered with the IRD as a VAT paying business.

Against this backdrop Chandrasekara said that the IRD is taking measures to raid unregistered businesses that charge VAT, adding that the IRD is continuously regulating market misconduct reported around the island.

“We are frequently receiving complaints related to such illegal businesses. We are continuously monitoring the market and taking necessary action to prevent the public from being exploited. Last week, IRD officials raided a business for charging VAT without being registered in the IRD,” she said.