CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Sri Lankan Court Shuts Down VAT Hike

Sri Lankan Court Shuts Down VAT Hike

by Lorys Charalambous, Tax-News.com, Cyprus

08 August 2016


Sri Lanka's value-added tax rate has been returned to 11 percent as a result of a ruling from the Supreme Court.

Earlier and effective from May 2, 2016, the Government had issued a notice informing taxpayers that the rate of VAT had risen from 11 percent to 15 percent. This has now been reversed.

The Supreme Court intervened on the basis that Parliament had not consented to the tax policy change.

Sri Lanka has sought to make a number of changes to its VAT rules in recent months. In its Budget, delivered in March, the Government announced that a zero rate would be levied on exported goods and the provision of services for consideration in foreign currency outside of Sri Lanka; a 12.5 percent rate on the services sector; and an eight percent rate on the manufacturing sector and on imported goods. In addition, the Budget included proposals to raise the VAT registration threshold to LKR12m (USD83,000).

TAGS: VAT rates | tax | value added tax (VAT) | Sri Lanka | VAT cross-border transactions | manufacturing | currency | services

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »