Sri Lanka has passed the Value Added Tax (Amendment) Act, No. 16 of 2024, increasing the VAT rate from 15% to 18% retroactively from 1 January 2024. The Act also lowers the VAT registration threshold from LKR 20 million per quarter or LKR 80 million per year to LKR 15 million per quarter or LKR 60 million per year, effective from 1 January 2024. Taxpayers affected by the change must register by 20 March 2024, as per the notice from the Sri Lanka Inland Revenue Department.
Source Orbitax
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