Free tool · Sri Lanka tax
Sri Lanka VAT Calculator (18%)
Add VAT to a price, take it out of a VAT-inclusive total, or work out VAT on several items at once. Uses the current 18% standard rate, with earlier rates for older invoices.
- Standard rate
- 18% from 1 January 2024
- Last verified
Total including VAT
Rs.11,800.00
- Price before VAT
- 10,000.00
- VAT at 18%10,000.00 × 18%
- 1,800.00
- Total including VAT
- 11,800.00
To add VAT, multiply by 1.18. VAT is 15.3% of the VAT-inclusive total.
The formulas
How to calculate VAT in Sri Lanka
Adding VAT to a price
Price × 1.18
VAT is 18% of the price before VAT. Multiplying by 1.18 gives the price and the VAT together.
- Price before VAT
- 10,000.00
- VAT10,000 × 18%
- 1,800.00
- Total including VAT
- 11,800.00
Removing VAT from a total
Total × 18/118
The VAT inside a VAT-inclusive total is 18/118 of it, not 18%. Dividing the total by 1.18 gives the price before VAT.
- Total including VAT
- 11,800.00
- VAT11,800 × 18/118
- 1,800.00
- Price before VAT
- 10,000.00
Quick reference
18% VAT on common amounts
Read across for VAT added on top of an amount, or the VAT already inside it. Select an amount to open it in the calculator.
| Amount (Rs.) | If VAT is added | If VAT is included | ||
|---|---|---|---|---|
| VAT | Total | VAT inside | Before VAT | |
| 1,000 | 180.00 | 1,180.00 | 152.54 | 847.46 |
| 5,000 | 900.00 | 5,900.00 | 762.71 | 4,237.29 |
| 10,000 | 1,800.00 | 11,800.00 | 1,525.42 | 8,474.58 |
| 25,000 | 4,500.00 | 29,500.00 | 3,813.56 | 21,186.44 |
| 50,000 | 9,000.00 | 59,000.00 | 7,627.12 | 42,372.88 |
| 100,000 | 18,000.00 | 118,000.00 | 15,254.24 | 84,745.76 |
| 250,000 | 45,000.00 | 295,000.00 | 38,135.59 | 211,864.41 |
| 500,000 | 90,000.00 | 590,000.00 | 76,271.19 | 423,728.81 |
| 1,000,000 | 180,000.00 | 1,180,000.00 | 152,542.37 | 847,457.63 |
VAT rates
VAT rates in Sri Lanka
18%
Standard rate
Applies to most goods and services supplied in Sri Lanka and to imports, from 1 January 2024.
20.5%
Financial services
For taxable periods starting on or after 1 July 2026, under the Value Added Tax (Amendment) Act, No. 14 of 2026. Worked out on the value added by the business, not added to a price.
0%
Zero-rated and exempt
Exports are zero-rated: no VAT is charged, but input VAT can still be claimed. Supplies listed in the First Schedule of the VAT Act are exempt from VAT.
Standard rate history
Checking an older invoice? Use the rate in force on the date of supply. The calculator above lets you pick any of these rates.
| Period | Standard rate |
|---|---|
| From 1 January 2024 | 18% |
| 1 September 2022 to 31 December 2023 | 15% |
| 1 June 2022 to 31 August 2022 | 12% |
| Before 1 June 2022 | 8% |
For businesses
VAT registration, returns and SSCL
When you must register
Register when your taxable supplies exceed, or are likely to exceed, either threshold. The Value Added Tax (Amendment) Act, No. 14 of 2026 kept both unchanged; the cut to Rs. 36 million proposed earlier in 2026 did not become law.
| Supplies | In a quarter | In 12 months |
|---|---|---|
| Goods and services | Rs. 15,000,000 | Rs. 60,000,000 |
| Financial services | Rs. 3,000,000 | Rs. 12,000,000 |
Foreign digital services
From 1 July 2026, non-resident businesses that supply services to people in Sri Lanka through electronic platforms, such as streaming, apps and online software, must register for VAT once they pass the same thresholds.
Payments and returns
- VAT payment
- By the 20th of the following month
- VAT return
- By the last day of the month after each taxable period
- How to file
- Online through IRD e-Services
VAT and SSCL are different
The Social Security Contribution Levy is a separate 2.5% levy on a business’s liable turnover. It is not VAT, and this calculator does not include it. The liable share of turnover depends on the activity:
| Activity | Liable turnover |
|---|---|
| Imports | 100% |
| Services | 100% |
| Manufacturing | 85% |
| Wholesale and retail | 50% |
| Sales by registered distributors | 25% |
FAQ
VAT in Sri Lanka: common questions
Multiply the price before VAT by 18% to get the VAT, then add it to the price. For Rs. 10,000.00, the VAT is Rs. 1,800.00 and the total is Rs. 11,800.00. In one step, multiply by 1.18.
Multiply the VAT-inclusive price by 18/118 to find the VAT inside it, or divide by 1.18 to find the price before VAT. For Rs. 11,800.00, the VAT is Rs. 1,800.00 and the price before VAT is Rs. 10,000.00. Taking 18% off the total gives the wrong answer.
The standard rate is 18%, in force since 1 January 2024. Exports are zero-rated, and some goods and services are exempt under the First Schedule of the VAT Act. For taxable periods starting on or after 1 July 2026, VAT on financial services is 20.5%, worked out on the value added by the business rather than on a price.
A business must register for VAT when its taxable supplies exceed, or are likely to exceed, Rs. 15,000,000 in a quarter or Rs. 60,000,000 in 12 months. The Value Added Tax (Amendment) Act, No. 14 of 2026 kept these thresholds unchanged; the reduction to Rs. 36 million proposed earlier in 2026 was not enacted.
No. The Social Security Contribution Levy (SSCL) is a separate levy of 2.5% on a business's liable turnover. How much turnover is liable depends on the activity: for example 100% for services and imports, 85% for manufacturing and 50% for most wholesale and retail sales. It is not part of the VAT on an invoice.
Yes, from 1 July 2026. Non-resident businesses that supply services to people in Sri Lanka through electronic platforms, such as streaming, apps and online software, must register for VAT once their supplies pass the same Rs. 15,000,000 quarterly or Rs. 60,000,000 annual threshold.
VAT is payable on or before the 20th day of the following month. The return is due on or before the last day of the month after the end of each taxable period. For taxable periods from 1 July 2025, returns must be filed online through the Inland Revenue Department’s e-Services.
No. Only VAT-registered businesses can charge VAT and issue tax invoices. If a supplier is not registered, their price should not include a VAT amount.
Sources
Where these numbers come from
Every rate, threshold and date on this page comes from the Inland Revenue Department. Last verified .
- 01Value Added Tax (VAT) (opens in a new tab)
Inland Revenue Department, Sri Lanka
Standard rate of 18% from 1 January 2024 and earlier rates, registration thresholds, and payment and return due dates.
- 02Notice SEC/PN/VAT/2026-03: Amendment to the Value Added Tax Act (opens in a new tab)
Inland Revenue Department, Sri Lanka
Value Added Tax (Amendment) Act, No. 14 of 2026, certified on 30 June 2026: thresholds unchanged, 20.5% on financial services and VAT on digital services from 1 July 2026.
- 03Social Security Contribution Levy (SSCL) (opens in a new tab)
Inland Revenue Department, Sri Lanka
SSCL of 2.5% on liable turnover, and the share of turnover that is liable for each activity.
This calculator gives general estimates, not tax advice. Spotted something that looks wrong? Let us know.
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