The Department of Inland Revenue has announced a further postponement of the effective date for imposing Value Added Tax (VAT) on digital services supplied through electronic platforms by non-resident service providers.

According to WEB Notice No. PN/VAT/2025-03, originally issued on October 1, 2025, the tax was scheduled to take effect earlier this year. 

However, issuing a notice, the department announced that implementation has now been deferred until July 1, 2026, subject to formal amendment of the VAT Act.

The Finance Ministry had earlier announced that the effective date, initially set for October 2025, was postponed to April 2026.

At the time, the government said the delay was due to requests from stakeholders in the digital services sector, noting that it had engaged with them and they had asked for more time to prepare for compliance. (Newswire)

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