Who Really Pays? Digital VAT, Indirect Taxes, and the Threshold Whiplash

In this episode, tax expert Suresh Perera (Tax Principal at KPMG Sri Lanka) breaks down the introduction of Digital VAT, explains why it differs from a Digital Services Tax, and discusses the legal framework governing digital taxation in Sri Lanka. The conversation also explores the current legal gap surrounding cryptocurrency taxation, recent changes to VAT and SSCL thresholds, the impact of indirect taxes on consumers, and the criminalization of certain tax compliance failures under the Inland Revenue Act.

Whether you’re a business owner, tax professional, investor, or simply interested in Sri Lanka’s evolving tax system, this discussion provides valuable insights into the country’s changing regulatory environment.