The Sri Lankan government has published the Value Added Tax (Amendment) Bill, which includes various changes to the Value Added Tax Act, No. 14 of 2002. The main changes include:
- The extension of the effective date of VAT on digital services supplied by non-residents to persons in Sri Lanka through an electronic platform to 1 July 2026 (already announced by Inland Revenue);
- An increase in the VAT rate on financial services from 18% to 20.5%, effective 1 July 2026; and
- A reduction in the VAT…