Sri Lanka to Implement VAT Amendments for Digital Services, Financial Services, and Registration

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…