Sri Lanka 12.5% VAT 2016
The 2016 Sri Lankan budget includes a splitting of the current 11% VAT rate. All services will be subject to 12.5% VAT. Goods will only be subjects to 8% VAT. The current Luxury VAT rate of 12% will be removed.
The VAT registration threshold is to be cut from LKR 15million to LKR 12million per annum.