- The VAT (Amendment) Bill No. 31 modifies various VAT provisions in Sri Lanka.
- VAT on nonresident digital service supplies to residents via electronic platforms is extended to July 1, 2026.
- Mandatory VAT registration thresholds are reduced to 36 million LKR per year and 9 million LKR per quarter, effective July 1.
- Input VAT credits are disallowed on certain imported plants, machinery, equipment, or vehicles for projects, subject to conditions.
- Recordkeeping is required for deemed input VAT credits on unsold goods.
Source: news.bloombergtax.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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