Government delays VAT on foreign digital services : New Decision

September 4, 2025 at 10:58 AM

The government has amended the date for the implementation of Value Added Tax (VAT) on services supplied by non-resident persons through electronic platforms to consumers in Sri Lanka.

The Finance Ministry announced that the effective date, which was previously scheduled for October 2025, has now been postponed to April 2026.

Addressing the post-Cabinet media briefing held today, Cabinet Spokesman Nalinda Jayatissa said that the reason for the delay was due to requests by those involved in the said digital services.

He further said that the government had engaged with them, during which they had requested time to prepare in this regard.

Minister Jayatissa also said that discussions were held with the International Monetary Fund (IMF) on the matter.

“We will fix the shortcomings in this regard, after which the VAT will be introduced. Hence, the postponement in the date of implementation,” he said. (Newswire)