On 28 December 2023, Sri Lanka’s Inland Revenue Department (IRD) issued the Notice to VAT Registered Persons announcing the new VAT rate of 18% from 15%—effective 1 January 2024. The notice also states that any advance payment made before 1 January 2024 for goods or services to be received on or after 1 January 2024 will be subject to the previous 15% VAT rate. However, the VAT rate for financial services will remain at 18% as usual.
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