- Global digital operators have to pay VAT according to Sri Lankan tax laws
- Non-payment of taxes by international digital service providers creates an unfair playing field for local competitors
- Loss of confidence in the efficiency of the tax system due to this uneven playing field
- The growth of the global digital economy is projected to double from 2019 to 2024
- Increase in tax revenue in 2023 due to the digital economy’s contribution to consumerism
- There is no internationally accepted mechanism to charge VAT from non-resident digital service providers
- The OECD recommends the ‘Destination principle’ for taxation of digital services.
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.