VAT on Digital Services: Insights from ICCSL webinar

THE International Chamber of Commerce Sri Lanka (ICCSL), through its Research, Knowledge Management, and Taxation (RKMT) Committee, recently successfully hosted a hybrid webinar titled “VAT on Digital Services and Cross-Border Compliance,” attracting businesses, professionals, and policymakers eager to understand the newly implemented VAT framework for digital services.

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The session opened with a welcome note by ICCSL Chairman Shanil Fernando who emphasised the importance of preparing Sri Lanka’s business community for the digital economy. He underscored that effective tax administration in the digital space will not only strengthen Government revenue but also enhance fairness and competitiveness. His remarks set a strong foundation for the discussions that followed.

The keynote by KPMG Sri Lanka Principal —- Tax and Regulatory Rifka Ziyard outlined the scope and enforcement mechanisms of the new VAT on nonresident digital service providers, offering clarity on how global trends are shaping local reforms. She mentioned that $ 40 million is the anticipated revenue from VAT on Digital Services and shared her insights on reforms required to strengthen the VAT framework. Following this, EY Partner/Principal Velauthapillai Shakthivel focused on the practical obligations for Sri Lankan businesses, particularly those receiving digital services. His insights into compliance strategies, registration requirements, and input tax credits helped businesses anticipate operational changes.