Sri Lanka has postponed its digital VAT implementation from October 1, 2025, to April 1, 2026, following requests from global platforms for more time to prepare. The delay, announced by Deputy Minister of Digital Economy Eng. Eranga Weeraratne, was approved by the Cabinet of Ministers on September 3. While the VAT Amendment Act No. 4 of 2025 requires non-resident digital service providers to collect VAT from Sri Lankan customers, the government is still deciding which components of digital bills will be taxed. This postponement comes amid ongoing complexities with e-commerce import taxes and the government’s consideration of alternatives to the de minimis rule for small-value items. A cabinet-appointed committee is currently reviewing the issue and has yet to release its findings.
Source: themorning.lk
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