Sri Lanka has enacted VAT amendments affecting digital services supplied by non-residents and raising the VAT rate on financial services.
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VatCalc · 4 months ago
Sri Lanka has postponed the introduction of VAT on non‑resident digital services to 1 July 2026, from the originally planned 1 April. The amendment imposes an 18 % VAT on B2C digital and electronic services, aligning the country with over 120 other jurisdictions. Guidance on registration and compliance will be released in 2027, while local providers already pay 18 % VAT and B2B services are expected to be zero‑rated.
Comarch · 6 months ago
Sri Lanka has launched a national electronic invoicing framework to modernize its tax administration and curb tax evasion. The system, integrated with the existing Revenue Administration Management Information System (RAMIS) via a secure Web API, will roll out in stages, starting with a pilot phase expected to be fully deployed by the end of 2025 and eventually becoming mandatory for all VAT‑registered businesses and B2C POS transactions.
BusinessWorld · 1 day ago
Philippines: The Court of Tax Appeals upheld the denial of Zuellig Pharma Asia Pacific Ltd's P59.81-million VAT refund claim after finding the company failed to meet documentary requirements. The court ruled that the lack of certificates of inward remittance for P2.88 million of zero-rated sales and non-compliant official receipts made the claim fatal.
BusinessWorld · 1 day ago
Philippines: Deloitte Philippines highlights that e-invoicing could curb corruption by improving tax transaction transparency, but notes the government’s limited tech capacity and lack of clear guidance as key challenges. Revenue Regulations No. 11-2025 set a March 2026 deadline for covered taxpayers to issue electronic invoices, later extended to 31 December 2026 by RR No. 26-2025.
News On Air · 2 days ago
India's Delhi government has reduced the VAT on aviation turbine fuel from 25% to 7%. The concessional rate will apply for six months, starting from 19 April 2026.
LiveLawBiz · 2 days ago
India: The Gauhati High Court has ruled that Hawkins Cookers Ltd. must pay an additional 8.5% VAT on the original sale price of pressure cookers, confirming the 12.5% rate applied before 2010. The court rejected the company's attempt to compute the differential tax on a reduced sale price after excluding previously collected 4% VAT.
Key Takeaways
From 1 July 2026, Sri Lanka requires VAT to be collected on digital services supplied by non-residents, as per the Value Added Tax (Amendment) Act, No 14 of 2026.
From 1 July 2026, the VAT rate on financial services in Sri Lanka rises from 18% to 20.5% under the new amendment.
On 30 June 2026, Sri Lanka enacted the Value Added Tax (Amendment) Act, No 14 of 2026.
Primary source
Read the full article at OrbitaxThis summary was published on VATfaqs.com on 20 July 2026. It relates to VAT developments in Sri Lanka. The original source is Orbitax.
