Sri Lanka Budget Speech 2024: Amendments to VAT Act and Increase in VAT Rate

• Amendment to the Value Added Tax Act, No. 14 of 2002 will be introduced
• Commissioner General will be able to specify the format of the tax invoice
• “Taxable period” in section 83 of the VAT Act will have the same return filing frequency for all taxpayers
• VAT rate will be increased from January 1, 2024
• Registered persons will be encouraged to use Point of Sale (POS) machines for VAT collection
• VAT exemptions will be eliminated, except for health, education, and essential foods
• Sri Lanka will be in line with regional peers in terms of standard VAT rate
• Once VAT collections meet tax targets, other indirect taxes such as SSCL and SCL can be phased out and rationalized.

Source: treasury.gov.lk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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