Sri Lanka’s VAT on OIDAR

If you are a service provider of Electronic Services to Srilankan customers, it is important to note that Sri Lanka has expanded its Value Added Tax (VAT) regime to cover cross-border digital services from 1 October 2025, aligning with global practices in taxing the digital economy. J the App by JustIDT is happy to share the snapshot on the move, introduced through the VAT (Amendment) Act No. 4 of 2025, brings non-resident service providers and online marketplaces within the tax net, ensuring parity between foreign and domestic suppliers, broadening the revenue base, and addressing the fast-growing consumption of digital goods and services by Sri Lankan users.