Nigeria will introduce VAT at 7.5% on digital services provided by foreign providers to local Nigerian consumers.
The new tax will be introduced from 1 January 2026 and affected companies will not be required to register until they exceed an annual threshold of USD 25,000 (approx. £18.500).
Sri Lanka
The Inland Revenue Department of Sri Lanka has confirmed that the introduction of VAT on digital services supplied by non-resident providers to Sri Lankan consumers will be postponed from 1 October 2025 until 1 April 2026.
Currently, foreign businesses providing digital services to consumers in Sri Lanka are not required to charge VAT on their sales. However, to ensure a level playing field between non-resident and resident providers, the Sri Lankan government will require VAT at a rate of 18% to be charged on these transactions once the new rules come into effect.
The tax will apply to a wide range of electronic services, including streaming services, apps, films, e-books, e-journals, and internet services.
The above news was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected].
