Sri Lanka’s 18% Digital VAT Risks Provoking Trump’s Wrath Amid U.S. Tariff Offensive
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Sri Lanka’s 18% Digital VAT Risks Provoking Trump’s Wrath Amid U.S. Tariff Offensive
Colombo, July 12, 2025 — Sri Lanka is bracing for potential diplomatic turbulence as it prepares to impose an 18% Value Added Tax (VAT) on digital services provided by non-resident tech giants primarily from the United States, starting October 1, 2025. This tax move directly affects companies like Facebook (Meta), Amazon, Netflix, Google, and X (formerly Twitter), all of which generate substantial revenue from Sri Lankan users despite having no …
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