Effective January 01, 2024, the Value Added Tax (VAT) rates have been revised according to Extraordinary Gazette Notification No. 2363/22 dated December 19, 2023:
Zero Percent VAT on Fabric Imports:
Fabrics specified in H.S. Code, as per Gazette Notification No. 2095/20, will now incur zero percent VAT upon import.
Standard Rate for Goods/Services:
Imports and/or supplies of goods and services (excluding fabrics) will be subject to an 18% VAT rate.
Advance Payments Notice:
Advance payments made before January 01, 2024, for goods or services due on or after this date, will be charged a 15% VAT rate.
Financial Services VAT Unchanged:
The VAT rate for financial services remains steady at eighteen percent (18%).
Source: gov.lk