MP Harsha de Silva, Chairman of the Committee on Public Finance (COPF), disclosed directives issued to the Department of Inland Revenue (IRD) concerning Value Added Tax (VAT) regulations for local software enterprises. Speaking to ‘X’, he highlighted pivotal discussions addressing VAT applicability for both local and foreign software and digital service providers.
MP Harsha de Silva emphasized that during discussions, the IRD recognized the necessity for VAT to be applied based on the consumption of services, not solely on the location of businesses.
Despite anticipated administrative challenges, the COPF has instructed the IRD to devise a comprehensive plan within a week, aimed at establishing an equitable environment for all stakeholders.
The MP expressed pride in advocating for fairness in the treatment of local software companies like PickMe compared to their foreign counterparts such as Uber.
