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Sri Lanka Tax Information

18% VAT

VAT is 18%. Registration required above LKR 80 million quarterly.

Freelancer Services to Invoice

  • Hourly consulting
  • Project-based work
  • Retainer agreements
  • Milestone billing
  • Rush/priority fees

Invoice Requirements in Sri Lanka

VAT number
Business registration
Client details
VAT (18%)
Total in LKR

Payment Terms

Net 14 or Net 30 is standard. Consider 25-50% deposits for larger projects.

Cash14 days30 daysCredit

Payment Methods in Sri Lanka

Bank TransferFriMiCredit CardCash

Freelancer Invoice Tips

  • Always use a unique invoice number
  • Clearly state payment terms upfront
  • Include detailed breakdown of work
  • Add late payment fees
  • Keep copies for tax purposes

Frequently Asked Questions

What tax rate applies to freelancer invoices in Sri Lanka?

Sri Lanka has 18% VAT. VAT is 18%. Registration required above LKR 80 million quarterly.

What payment methods are common for freelancers in Sri Lanka?

Common payment methods in Sri Lanka include: Bank Transfer, FriMi, Credit Card, Cash. Net 14 or Net 30 is standard. Consider 25-50% deposits for larger projects.

What should freelancer invoices include in Sri Lanka?

Your invoice should include: VAT number, Business registration, Client details, VAT (18%). For freelancer services specifically, also include: Hourly consulting, Project-based work, Retainer agreements.

How do I invoice for hourly freelance work?

List each task with hours worked and hourly rate. Include dates and detailed descriptions.

Should I charge a deposit as a freelancer?

Yes, especially for larger projects. A 25-50% deposit protects you from non-payment.

What is Sri Lanka's VAT rate?

18% on most goods and services.