INSUBCONTINENT EXCLUSIVE:
The Inland Revenue Department (IRD) states that all Value Added Tax (VAT) returns need to be submitted digitally from July 01, 2025
Handbook filed return submissions will just be allowed under extraordinary circumstances authorized by the Commissioner General, the IRD
noted.Earlier today (17 ), the IRD revealed that locally produced liquid milk and yogurt are now exempted from VAT, following the enactment
of the Value Added Tax (Amendment) Bill.In addition to dairy products, VAT has also been eliminated on naphtha supplied by the Ceylon
Petroleum Corporation (CPC) to the Ceylon Electricity Board (CEB) for electrical power generation.The change presents new tax obligations
From October 1, VAT will be imposed on digital services provided by non-resident entities to customers in Sri Lanka through electronic
This relocation aligns with global trends in taxing cross-border digital services.Further, the department revealed that all people and
entities engaged in the industrial import or export of goods are now needed to register under the updated VAT framework.The department
clarified that the VAT exemption came into result on April 11, the day the expense received parliamentary assent from Speaker Dr
The bill was passed in Parliament on April 9
In addition, the VAT exemption on the import of airplane engines or aircraft extra parts, determined under defined Harmonized Commodity
Description and Coding System Numbers for Custom purposes has actually been lifted with impact from April 11.
