VATLive > Blog > Sri Lanka > Sri Lanka cuts VAT from 15% to 8%

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.

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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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