What is the current VAT rate in Sri Lanka?

The standard rate of Value Added Tax (VAT) in Sri Lanka has been 18% since 1 January 2024. It was raised from 15% by Extraordinary Gazette No. 2364/22, dated 29 December 2023, issued under the Value Added Tax Act No. 14 of 2002.

How do I remove 18% VAT from a total in Sri Lanka?

Divide the VAT-inclusive total by 1.18 to get the base, then subtract that from the total to get the VAT charged. Example: Rs 11,800 ÷ 1.18 = Rs 10,000 base, and Rs 11,800 − Rs 10,000 = Rs 1,800 VAT. The reverse-VAT mode on this page does this automatically.

When did Sri Lanka VAT increase to 18%?

VAT moved to 18% with effect from 1 January 2024, by gazette order. Before that, the rate was 15% (from 1 September 2022), and earlier still 12% (June–August 2022) and 8% (December 2019 to May 2022). For invoices issued before 2024, select the matching historical rate.

What is the difference between VAT-inclusive and VAT-exclusive prices?

A VAT-exclusive price (or 'net' price) is the supply value before VAT — what you'd record as revenue. The VAT-inclusive price (or 'gross' price) is that base plus the VAT charged — what the customer actually pays. Sri Lankan tax invoices must show both, plus the VAT amount, by IRD invoicing rules.

Is VAT charged on imports in Sri Lanka?

Yes, but on a different base. Customs VAT is charged on CIF value + Customs Duty + Cess + PAL, not just the invoice price. This calculator is for domestic supplies (services, retail, B2B). A separate import-duty calculator is on the roadmap.

When must a business register for VAT in Sri Lanka?

A business must register for VAT once its taxable supplies exceed Rs 15,000,000 in any three consecutive months, or Rs 60,000,000 across any twelve-month period. Voluntary registration is also possible below the threshold.

Do I include SSCL in this calculator?

No. The Social Security Contribution Levy (SSCL) is a separate 2.5% levy on a similar but not identical base, and not all businesses are liable for it. Mixing the two in one calculator confuses both. A dedicated SSCL calculator is planned.

How should VAT amounts be rounded on tax invoices?

The IRD VAT Guide for SMEs (2024) shows VAT to two decimal places on tax invoices. Round half-up. The 'Round to nearest LKR' option in this calculator is a UX convenience for cash receipts only — it is not the IRD default.

What if my calculation differs from the supplier's quote?

Most discrepancies come from rounding (per-line vs. total) or from a supplier accidentally applying VAT to a price that already included it (double-charging). Compare both methods on this page with the same inputs. If the gap is more than rounding, ask the supplier for a corrected tax invoice.

When were these rates last verified?

The current rate and historical brackets on this page were last cross-checked against the IRD's VAT page and the gazette archive on 2026-05-12. The page is reviewed whenever a new VAT order is gazetted.

Sri Lanka · Finance

Sri Lanka VAT Calculator — Add or Remove 18%

Add or strip 18%Value Added Tax from any rupee amount, with a clear base / VAT / total breakdown and a copy-ready invoice line. Defaults to Sri Lanka's current standard rate from 1 January 2024; supports the older 8%, 12%, and 15% rates for reconciling historical invoices. Sources cited below.

By Induwara Ashinsana— Executive Director, Ryzera TechnologiesUpdated May 12, 2026

Sri Lanka VAT Calculator18% standard

IRD verified · Gazette 2364/22

VAT-exclusive amount (Rs)

The pre-VAT supply value. The calculator adds VAT and shows the inclusive total.

VAT rate

Rounding

Quick amounts

VAT-exclusive (base)

Rs 47,200.00

Your input

VAT @ 18%

Rs 8,496.00

VAT-inclusive (total)

Rs 55,696.00

Base + VAT

Invoice line preview

Subtotal: Rs 47,200.00 / VAT (18%): Rs 8,496.00 / Total: Rs 55,696.00

18% (current) — Extraordinary Gazette No. 2364/22.

How it works

Sri Lankan Value Added Tax is charged under section 5 of the Value Added Tax Act No. 14 of 2002, which defines the VAT payable on a taxable supply as the value of that supply multiplied by the rate specified by Order published in the Gazette. The current Order is Extraordinary Gazette No. 2364/22 (29 December 2023), which sets the standard rate at 18% from 2024-01-01.

Two situations matter for a calculator: addingVAT to a pre-VAT price you're quoting, and removing VAT from a tax-inclusive total to recover the supply value (for accounting or input-credit purposes). With the rate expressed as a decimal r (so 18% becomes 0.18), the math is:

Add VAT: vat = A × r ; total = A × (1 + r)
Remove VAT: base = A ÷ (1 + r) ; vat = A − base

The reverse formula can also be written as the “VAT fraction”: vat = A × r ÷ (1 + r). At 18% that simplifies to vat = A × 9 ÷ 59 (since 0.18 / 1.18 = 9 / 59). Both forms agree with this calculator to the cent — switch to remove mode and check the small “Fraction formula” line under the VAT result tile to see it.

Rounding follows the IRD VAT Guide for SMEs (2024): two decimal places on tax invoices, rounded half-up. The “Round to nearest LKR” option is a convenience for cash receipts (kade-style transactions where coins are inconvenient) and is labelled as such — it is not the IRD-prescribed format for tax invoices. The “No rounding” option keeps full precision for downstream calculations.

Historical rates are included so you can match older invoices: 8% from December 2019, 12% from June 2022, 15% from September 2022, and 18% from January 2024. The calculator surfaces a warning banner when a historical rate is selected so it's never used by accident on a current invoice.

Worked examples

Add 18% VAT to a service quote

Mode: Add · Rate: 18% · Amount: Rs 40,000.00

VAT = 40,000 × 0.18 = 7,200.00
Total = 40,000 + 7,200 = 47,200.00
Base Rs 40,000.00 / VAT Rs 7,200.00 / Total Rs 47,200.00

Reverse-calculate from a VAT-inclusive supermarket receipt

Mode: Remove · Rate: 18% · Amount: Rs 11,800.00

Base = 11,800 ÷ 1.18 = 10,000.00
VAT = 11,800 − 10,000 = 1,800.00
Cross-check (VAT fraction): 11,800 × 0.18 ÷ 1.18 = 1,800.00 ✓
Base Rs 10,000.00 / VAT Rs 1,800.00 / Total Rs 11,800.00

Historical 15% reconciliation (pre-Jan 2024 invoice)

Mode: Add · Rate: 15% · Amount: Rs 25,000.00

VAT = 25,000 × 0.15 = 3,750.00
Total = 25,000 + 3,750 = 28,750.00
Base Rs 25,000.00 / VAT Rs 3,750.00 / Total Rs 28,750.00

Frequently asked questions

Sources & references

Rates and methodology were last cross-checked against the IRD sources on 2026-05-12. The page is reviewed whenever a new VAT order is gazetted.

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