- VAT and SSCL registration thresholds will be reduced from LKR 60 million to LKR 36 million, effective April 1, 2026.
- 18% VAT and 2.5% SSCL will be imposed on imported coconut and palm oil, and SSCL will apply to imported or manufactured vehicles.
- Imported fabrics will be taxed under VAT instead of CESS, aligning with the treatment of locally produced fabrics.
- A national e-invoicing system will be implemented in phases, starting with export-oriented and pilot companies, then all VAT-registered businesses, and finally via POS devices for real-time reporting.
- VAT on digital services will take effect on April 1, 2026, and a new Inland Revenue office complex will be developed to support digitized tax collection.
Source: vatabout.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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