Sri Lanka delays VAT on digital services by non-resident providers to April 2026.
The Sri Lankan Inland Revenue Department (IRD) issued a notice on 1 October 2025 regarding the postponement of the effective date of the Imposition of VAT on the supply of digital services through an electronic platform by non-resident service providers.
Postponement of effective date of Imposition of VAT on the supply of digital services through an electronic platform by the non-resident service providers.
The Cabinet of Ministers, at its meeting held on 3 September 2025, has granted approval to postpone the effective date of the implementation of Value Added Tax (VAT) on the supply of services through an electronic platform by non-resident service providers.
Accordingly, the date of implementation of VAT on such services, which was initially scheduled to be implemented with effect from 1 October 2025, has been postponed to 1 April 2026, with pending approval of parliament. The necessary legislative changes will be made in due course.
