Sri Lanka: VAT rules for supply of services by nonresident through electronic platforms
Effective October 1, 2025
The Inland Revenue Department (IRD) on July 1, 2025, issued Gazette Notification No. 2443/30, announcing that nonresident persons supplying services via electronic platforms to consumers in Sri Lanka must register for value added tax (VAT), charge 18% VAT on applicable servicers, and remit tax to the IRD.
The regulation will be effective from October 1, 2025.
Read a July 2025 report prepared by the KPMG member firm in Sri Lanka that provides more information in the form of “frequently asked questions” (FAQs).