VAT for all digital services firms: Opposition delivers when Govt. fails

SJB MP Dr. Harsha de Silva 

• CoPF advocates fair taxation for software and digital services 
• IRD acknowledges importance of applying VAT based on where services are consumed than where it operates
• Directs IRD to formulate plan within a week to create a level-playing field for all players
• MP Dr. Harsha de Silva says proud to champion fairness for local software companies against foreign counterparts 

Main opposition Samagi Jana Balawegaya MP Dr. Harsha de Silva yesterday announced a significant breakthrough following crucial discussions on Value Added Tax (VAT) for both local and foreign software and digital service providers at the Committee on Public Finance (CoPF). 

Taking to ‘X’, the MP who also serves as the CoPF Chairman disclosed that the Inland Revenue Department (IRD) acknowledged the importance of applying VAT based on where services are consumed, rather than where businesses operate.

Despite admin challenges, he said the IRD was directed to formulate a comprehensive plan within a week, ensuring a level playing field for both local and foreign software and digital service providers. 

“Proud to champion fairness for local software companies like PickMe vs. foreign counterparts like Uber, thus further empowering local digital and software providers in Sri Lanka,” Dr. de Silva added.