Sri Lanka cuts VAT from 15% to 8%

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.