VAT on Digital Services is Not a Tax on the Digital Economy

Sri Lanka’s current Value Added Tax (VAT) framework has not kept pace with the growing volume of cross-border digital transactions. In response, the government is now moving forward with a proposal to extend the standard VAT rate of 18% to digital services provided from abroad to consumers in Sri Lanka.

Arutha’s latest brief unpacks this new policy to better understand its implications.

Download here:

ARUTHA-IN-BRIEF-VOL-1-ISSUE-1.pdf

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