Sri Lanka: Amendments to VAT law enacted
The Speaker certified the Value Added Tax (Amendment) Act No.16 of 2024
The Speaker certified the Value Added Tax (Amendment) Act No.16 of 2024
The Speaker on 20 March 2024 certified the Value Added Tax (Amendment) Act No.16 of 2024, which provides:
- The standard value added tax (VAT) rate is increased to 18% (from 15%) for any tax period beginning from 1 January 2024. The VAT rate on financial services will continue at 18%.
- The VAT registration threshold is reduced to LKR 60 Mn (from LKR 80 Mn) for a period of 12 months and LKR 15 Mn (from LKR 20 Mn) per tax period, effective 1 January 2024. A person liable for VAT under the amended rules must register for VAT within 15 days from the date of certification by the Speaker.
Read a March 2024 report prepared by the KPMG member firm in Sri Lanka
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