- Effective April 1, 2026, importation and supply of fabric in Sri Lanka are subject to 18% VAT.
- Fabric imported before April 1, 2026, and subject to a CESS levy at importation is exempt from VAT.
- Proper and separate records must be maintained for exempted transactions.
Source: kpmg.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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