Sri Lanka: VAT rules for supply of services by nonresident through electronic platforms

Effective October 1, 2025

Share
July 7, 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).

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline