Sri Lanka Inland Revenue Notes Further Postponement of VAT on Digital Services Provided by Non-Residents

Sri Lanka Inland Revenue has published a Notice to Taxpayers announcing a further postponement of the effective date for the implementation of Value Added Tax (VAT) on the supply of services through electronic platforms by non-resident service providers. The implementation of VAT on digital services was originally to apply from 1 October 2025, but was extended to 1 April 2026. It is now provided that the implementation of VAT on digital services is further postponed to 1 July 2026.