VAT rate or threshold changes hit invoicing from day one. Talk to us first.
This article is a deep-dive on the Value Added Tax measures in Sri Lanka Budget 2027 — the standard rate, the registration threshold, the schedule of exempt supplies, the zero-rated categories, and the effective date. Updated within the hour of the Budget speech and daily thereafter.
What changedAwaiting speech
TODO: Short list of the specific VAT measures announced. One bullet per measure, with effective date.
The new rateAwaiting speech
TODO: Confirm the new standard VAT rate and when it applies from. If a dual-rate regime is introduced (for example a reduced rate for a specific category), set out both rates and the categories.
Changes to the registration thresholdAwaiting speech
TODO: Confirm any change to the Rs 60 million annual threshold or the Rs 15 million quarterly threshold, and the effective date for newly-registrable businesses.
Exempt and zero-rated changesAwaiting speech
TODO: List any supplies added to, or removed from, the exempt schedule. List any new zero-rated categories (e.g. exports, specific sectors).
What VAT-registered businesses must doAwaiting speech
TODO: Action checklist for VAT-registered businesses — update invoice templates, update accounting software tax codes, update price books, communicate to customers, revise VAT returns in progress.
When this takes effectAwaiting speech
TODO: Confirm exact effective date. Flag whether transitional rules apply for contracts in progress.
- Sri Lanka Budget 2027 — Tax Changes (Live hub)
- Personal Income Tax changes in Sri Lanka Budget 2027
- Understanding Sri Lanka VAT (current rules)
- Sri Lanka WHT quick guide
Disclaimer: VAT measures announced in Sri Lanka Budget 2027 are subject to amendment of the Value Added Tax Act and come into force only when the related Bill is passed. Individual VAT treatment depends on the facts of the supply. Obtain professional advice before acting on anything summarised here.