- Global digital operators have to pay VAT according to Sri Lankan tax laws
- Non-payment of taxes by international digital service providers creates an unfair playing field for local competitors
- Loss of confidence in the efficiency of the tax system due to this uneven playing field
- The growth of the global digital economy is projected to double from 2019 to 2024
- Increase in tax revenue in 2023 due to the digital economy’s contribution to consumerism
- There is no internationally accepted mechanism to charge VAT from non-resident digital service providers
- The OECD recommends the ‘Destination principle’ for taxation of digital services.
Source: ft.lk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
