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Sri Lanka cuts VAT from 12% to 11% 2015

  • VAT
  • 01 November 2014 | Richard Asquith

Sri Lanka cuts VAT from 12% to 11% 2015

Update January 2015 - this rise has not been passed.

The Sri Lankan government has announced a reduction in VAT in 2015 from 12% to 11%. The proposed cut came as part of a range of political give aways ahead of next year’s elections.

The VAT registration threshold will also be raised at the same time to LKR 15m per year.

Aside from the reduction in indirect tax, there will also be boosts to employee retirement funds at the expense of employers.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.