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Still in force (Checked by us: 27 October 2026)
VAT Still in force1 min read
VAT changes from 1 July 2026: 18% VAT on foreign digital services
Based on: RegFollower, 3 July 2026 · Checked by us: 27 October 2026
In one line
Since 1 July 2026, 18% VATValue Added Tax18% tax added to prices by VAT-registered businesses. See all tax words applies to services that foreign companies sell online to people in Sri Lanka (apps, streaming, subscriptions).
Key points
- This includes streaming, apps, e-books and online subscriptions.
- Some subscription prices may go up.
- A proposal to lower the VAT registration limit to Rs. 36 million was not included in the final law. The limit stays Rs. 60 million a year / Rs. 15 million a quarter.
- The VAT rate stays at 18%.
What you should do
- Watch your monthly subscription bills.
- Business owners: compare your sales with the limit every quarter.
Source
Was this clear?
This is not the Inland Revenue Department (IRD) website. Information here is a simple general explanation, not tax advice. Check ird.gov.lk or a qualified professional before you act.