Sri Lanka postpones VAT on digital services until July 1

Colombo, April 05 (Daily Mirror) - The government has further postponed the implementation of an 18% Value Added Tax (VAT) on digital services supplied by non-resident providers through electronic platforms until July 1, according to a circular issued by the Inland Revenue Department.

The Commissioner General of the Department said that the tax will remain deferred until the formal amendment to the Value Added Tax Act is enacted.

The VAT on specified digital services was initially scheduled to take effect from October 1 last year under the Value Added Tax (Amendment) Act, as outlined in Extraordinary Gazette No. 2443/30. It was later postponed to April 1 through a subsequent gazette notification.