Sri Lanka Tax Agency Issues Notice Announcing Tax Measures Under VAT (Amendment) Act

The Sri Lankan Inland Revenue Department April 11 issued Notice No. PN/VAT/2025-01, announcing tax measures under the VAT (Amendment) Act, No. 4/2025. The amendment act includes measures to: 1) impose VAT on digital services that nonresidents supply on electronic platforms to persons in Sri Lanka, effective Oct. 1; 2) replace the simplified VAT regime with a risk-based refund mechanism, allowing refunds within 45 days of the return deadline to eligible exporters and registered persons on supplies for specified projects, effective Oct. 1; 3) require VAT registration for all commercial importers and exporters, regardless of turnover thresholds or exemptions; 4) zero ...