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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.


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.


VAT news
VAT news