On 1 June 2022, the Inland Revenue Department of Sri Lanka issued a Notice to VAT Registered Persons regarding changes in the VAT rates as per the Extraordinary Gazette Notification No. 2282/26, published in the Official Gazette on 31 May 2022.
The notice was issued as a part of the tax reform aimed at increasing government revenue. The VAT rate has been revised as set out below:
- 0% on the import of goods (fabrics) set out in the H.S. Code and description specified in Columns I and II of…