VAT on financial services upped to 18%
The Value Added Tax (Amendment) Bill was passed in Parliament today (24).The Second Reading of the Value Added Tax (Amendment) Bill was taken up for debate from 11.00 am to 4.30 pm today.
The Bill to amend the Value Added Tax Act No. 14 of 2002 was recently passed in the Committee on Public Finance (COPF).
Accordingly, the Value Added Tax on the provision of financial services will be increased from 15% to 18% with effect from Jan. 01, 2022. In addition, this amendment will provide for the exemption of VAT only on medical equipment, machinery and pharmaceutical donations made to Government Hospitals and the Ministry of Health in the event of any epidemic or public emergency.