Srilanka, July 7 -- The government has announced that Value Added Tax (VAT) at 18% will be imposed on income earned through online services provided by foreign individuals and platforms to users in Sri Lanka, effective October 1.

This move follows the issuance of an extraordinary gazette notification by the Commissioner General of Inland Revenue, Rukdevi Himali Fernando, aimed at regulating and taxing the growing sector of cross-border digital services.

Under the new regulation, the VAT will apply to a wide range of services, including but not limited to:

Software as a Service (SaaS) Online stores and marketplaces Digital advertising and marketing Cybersecurity and IT support services Video, music, and live-streaming platforms Online ...