Sri Lanka defers non‑resident VAT on B2C e‑services to 1 July 2026

29 April 2026

Sri Lanka’s Inland Revenue Department (IRD) has announced a further deferral of VAT on digital services supplied through electronic platforms by non‑resident providers to Sri Lankan consumers. This announcement moves the effective date from 1 April 2026 to 1 July 2026, subject to the necessary legislative and administrative steps.

Under the new framework, non‑resident suppliers of in‑scope electronic services to Sri Lankan consumers will be required to charge 18% VAT on their sales. The scope is expected to be broad, covering common categories of digital services such as cloud computing, streaming services, digital advertising/marketing, apps, films, e-books, e-journals, and internet services.