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Sri Lanka will impose an 18% VAT on specified digital services starting October 1, 2025, under the Value Added Tax (Amendment) Act No. 04 of 2025, as detailed in Extraordinary Gazette No. 2443/30.
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Taxable digital services include cloud computing, SaaS, e-commerce, digital marketing, cybersecurity, IT support, streaming, fintech, social media, on-demand platforms, gaming, blockchain, NFTs, and subscription-based services.
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The VAT applies broadly to digital services, and even unlisted services may be taxed if they fall within the defined scope, ensuring comprehensive coverage of digital economy activities under the new regulation.
Source: www.dailymirrow.lk
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