The Committee on Public Finance (COPF) has issued directives to the Department of Inland Revenue (IRD) on the Value Added Tax (VAT) for local software companies.
Taking to ‘X’, COPF Chairman MP Harsha de Silva said pivotal discussions on VAT for local and foreign software, and digital service providers were held with the IRD.
The MP further said that following the discussion, the IRD acknowledged that VAT should apply where services are consumed and not where businesses operate.
He added that despite admin challenges, the COPF has directed the IRD to craft a plan for a level playing field in one week.
“Proud to champion fairness for local software companies like PickMe vs. foreign counterparts like Uber, thus further empowering local digital & software providers in #SriLanka,” the MP added. (NewsWire)