Sri Lanka has postponed the introduction of VAT on non‑resident digital services to 1 July 2026, from the originally planned 1 April. The amendment imposes an 18 % VAT on B2C digital and electronic services, aligning the country with over 120 other jurisdictions. Guidance on registration and compliance will be released in 2027, while local providers already pay 18 % VAT and B2B services are expected to be zero‑rated.
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Orbitax · 17 days ago
Sri Lanka has enacted VAT amendments affecting digital services supplied by non-residents and raising the VAT rate on financial services.
Comarch · 7 months ago
Sri Lanka has launched a national electronic invoicing framework to modernize its tax administration and curb tax evasion. The system, integrated with the existing Revenue Administration Management Information System (RAMIS) via a secure Web API, will roll out in stages, starting with a pilot phase expected to be fully deployed by the end of 2025 and eventually becoming mandatory for all VAT‑registered businesses and B2C POS transactions.
Live Law Biz · about 8 hours ago
India's Gujarat High Court dismissed the State's plea and upheld the VAT tribunal's decision that seeds used for sowing are exempt from VAT under the notification dated 29 April 2006. The court quashed revisional proceedings that had revived a tax demand of ₹1.72 crore against Western Agri Seeds Ltd.
TaxO · 2 days ago
India: The GST Appellate Tribunal ruled that GST authorities cannot challenge undisputed pre-GST credits under Section 74 of the CGST Act. The decision confirms that transitional credits from CENVAT, Krishi Kalyan Cess and VAT cannot be denied without specific findings, and Section 74 penalties are unsustainable.
Japan Times · 3 days ago
Japan's consumption tax will be cut for the first time, with the rate on food items (excluding restaurant meals) falling from 8% to 1% from 1 April 2027 for two years. Prime Minister Sanae Takaichi announced the measure to support households amid rising living costs. The change marks a historic first reduction in Japan's consumption tax since its introduction in 1989.
VatCalc · 8 days ago
Vietnam has introduced optional e-invoicing for foreign businesses, allowing them to issue Vietnamese electronic invoices to improve VAT recovery. The changes, effective from 1 July 2026, also provide flexibility on invoice timing and extend mandatory e-invoicing to larger domestic businesses.
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Key Takeaways
From 1 July 2026, they must charge 18 % VAT on B2C digital services.
The threshold is LKR 60 million per annum (≈$185,000).
B2B transactions are expected to be zero‑rated under the reverse charge mechanism.
Guidance is expected to be issued in 2027 (next year).
Primary source
Read the full article at VatCalcThis summary was published on VATfaqs.com on 4 April 2026. It relates to VAT developments in Sri Lanka. The original source is VatCalc.
