- Sri Lanka is proposing to subject non-resident sellers and marketplaces to VAT on B2C digital and electronic services.
- This is to level the playing field for local providers who are already subject to VAT.
- Over 100 countries already impose VAT on non-resident digital services.
- The Inland Revenue Department is expected to bring forward proposals by Spring 2024.
- The proposals may include broad e-services and short-term ride and accommodation platforms.
- The local VAT registration threshold is LKR 60 million pa (approx. $185,000).
- B2B transactions may use zero-rating reverse charge.
Source: vatcalc.com
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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