The Value Added Tax (Amendment) Act No. 04 of 2025, certified on April 11, introduces VAT on digital services provided by non-resident entities to users in Sri Lanka, effective from October 1, 2025.
Under the amendment to the Value Added Tax Act No. 14 of 2002, foreign suppliers offering services via electronic platforms will be required to register and comply with local VAT regulations. The Inland Revenue Department will announce detailed procedures on registration and payment. (Newswire)