3 October 2025
The Inland Revenue Department of Sri Lanka has confirmed that the introduction of VAT on digital services supplied by non-resident providers to Sri Lankan consumers will be postponed from 1 October 2025 until 1 April 2026.
Currently, foreign businesses providing digital services to consumers in Sri Lanka are not required to charge VAT on their sales. However, to ensure a level playing field between non-resident and resident providers, the Sri Lankan government will require VAT at a rate of 18% to be charged on these transactions once the new rules come into effect.
The tax will apply to a wide range of electronic services, including streaming services, apps, films, e-books, e-journals, and internet services.
LATEST NEWS
EU confirms €3 customs duty and VAT treatment for...
From 1 July 2026, the EU will remove the current customs duty exemption for goods valued at €150 or less. Instead, a temporary €3 customs duty per item...
SEE MORE
LATEST NEWS
EU council struggles to agree on the removal of the...
The EU is struggling to finalise changes to its Import One Stop Shop (IOSS) system as part of the 2028 Customs Reforms, with member states divided over plans...
SEE MORE
LATEST NEWS
Austria proposes a €2 customs charge on a per parcel...
Austria is proposing to impose a €2 charge on e-commerce low-value imports (under €150) entering Austria from outside the European Union from October...
SEE MORE