April 05, LNW(Colombo): The Sri Lankan government has once again postponed the implementation of an 18% Value Added Tax (VAT) on digital services provided by non-resident companies via online platforms, pushing the effective date to July 1.
According to a circular issued by the Inland Revenue Department, the delay will remain in place until the necessary amendments to the VAT Act are formally enacted.
The tax, which applies to selected digital services, was originally scheduled to come into effect on October 1 last year under the Value Added Tax (Amendment) Act, as per Extraordinary Gazette No. 2443/30. It was later deferred to April 1 through a subsequent gazette notification.
With this latest decision, the rollout has been postponed for a second time, extending the timeline for implementation.