Sri Lanka cuts VAT from 15% to 8%
- Nov 28, 2019 | Richard Asquith
Sri Lanka’s government has announced plans to reduce its Value Added Tax standard rate from 15% to 8% most goods on 1 December 2019. Financial Services will remain at 15%. Tourism-related services will be zero-rated. At the same time, it will withdraw the 2% Nation Building Tax.
The VAT registration threshold has recently been raised from 1 million rupees to 25 million per month.
The Sri Lankan VAT rate had been increased from 11% to 15% in November 2016.