The Gazette notification to give effect to the recently announced policy measures to reduce the Value Added Tax (VAT) was issued yesterday.
There will be no VAT charged on the supply of services by a hotel, guesthouse, restaurant or other similar business providing similar services, registered with the Sri Lanka Tourism Development Authority, if 60 % of the total value of the inputs is sourced from local supplies or sources.
The VAT on the supply of financial services will be at the rate of 15%.
On the import and supply of goods or supply of services, VAT will be charged at 8%.
The new VAT rates became effective from Sunday.