Sri Lanka Delays VAT on Non-Resident Sales of Digital Services

Candice Lindeman

October 6, 2025

Sri Lanka has amended its Value Added Tax Act to require that services sold through an electronic platform by non-resident suppliers be subject to 18% VAT.

Though this amendment was initially set to come into effect October 1, 2025, Sri Lanka has delayed the implementation until April 1, 2026.

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Author

Candice Lindeman

Candice Lindeman is a Junior Regulatory Counsel at Sovos within the Regulatory Analysis & Design Department where she focuses on international VAT and GST issues. Candice received a Bachelor’s degree in Philosophy from Allegheny College and a J.D. from Duquesne University School of Law. Candice is a member of the Pennsylvania Bar.

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