Sri Lanka: VAT bill and Committee Stage amendments passed by Parliament
Key changes provided in the VAT bill together with the Committee Stage amendments
Key changes provided in the VAT bill together with the Committee Stage amendments
The bill to amend the Value Added Tax (VAT) Act No. 14 of 2002 (published on 31 August 2023) and the Committee Stage amendments were approved by Members of the Parliament on 11 December 2023. The bill is still pending the certification by the Speaker.
Key changes include the following:
- Introduction of a new VAT exemption list: A new VAT exemption list tiled as Part III is included under the First Schedule to the VAT Act effective from 1 January 2024.
- Simplified Value Added Tax (SVAT) Scheme: Although there was an initial proposal to removal the SVAT Scheme, the bill does not include any provisions for such removal.
Read a December 2023 report [PDF 577 KB] prepared by the KPMG member firm in Sri Lanka
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