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11.2. VAT on the Supply of Services by Non-Residents

The supply of services by a non-resident with an establishment in Sri Lanka is subject to VAT in Sri Lanka if certain registration thresholds are met. The registration thresholds are taxable supplies of LKR 75 million or more per quarter (previously LKR 3 million till 31 December 2019) or LKR 300 million or more per annum (previously LKR 12 million till 31 December 2019), or if supplies are likely to exceed those amounts in the respective periods.

Services provided by a non-resident without an establishment in Sri Lanka that are imported into the country are not subject to VAT.