Sri Lanka VAT ID Submission for Microsoft Invoicing
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A new regulation is in effect for nonresident companies that provide services and digital products to customers in Sri Lanka. Beginning April 1, 2026, all digital service invoiced from nonresident companies will include 18% VAT.
- Impacted audience
- Customers and Partners in Sri Lanka that purchase services from nonresident Microsoft entities.
As per the Sri Lankan government’s VAT regulations (Value Added Tax Act (Amendment) No.4 of 2025 Act), effective April 1, 2026, all invoices for digital services provided to Sri Lankan customers by any nonresident must include 18% VAT.
Actions and timeline
Submit your Sri Lankan valid VAT ID number to Microsoft on or before February 20, 2026 or update on Microsoft partner central in the Section:
CSP
| User | Link |
|---|---|
| Partner-Billing profile | Billing profile |
| Reseller-Billing profile | Legal information |
| Partner- Adding new billing profile | Billing profile |
| Developer- Establishing Marketplace/Hardware | Billing profile |
Why this matters:
- Sri Lankan law mandates VAT compliance for remote sellers.
- Invoices without VAT ID will still include VAT, but customers won't be able to claim credits.
Note Microsoft relies solely on the information and documents submitted and won't independently validate the VATID.
Next Steps and Actions Required
Submit your Sri Lankan valid VAT ID number along with the softcopy of the VAT ID to Microsoft on or before March 20, 2026.
Questions?
Should you have any questions related to operations, contact your Microsoft representative.
Contact your tax advisor or local tax office if you have any questions related to the tax and business impact of this change. Microsoft can't provide guidance on your tax matters.