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Sri Lanka Tax Information

18% VAT

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

SaaS Services to Invoice

  • Monthly subscription
  • Annual subscription
  • Usage-based charges
  • Overage fees
  • Add-on features
  • Setup fees
  • Enterprise licensing

Invoice Requirements in Sri Lanka

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

Payment Terms

Prepaid monthly or annually. Enterprise contracts may be Net 30.

Cash14 days30 daysCredit

Payment Methods in Sri Lanka

Bank TransferFriMiCredit CardCash

SaaS Invoice Tips

  • Include subscription period
  • Show plan details
  • Detail overages separately
  • Reference account ID
  • Include next billing date

Frequently Asked Questions

What tax rate applies to saas 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 saass in Sri Lanka?

Common payment methods in Sri Lanka include: Bank Transfer, FriMi, Credit Card, Cash. Prepaid monthly or annually. Enterprise contracts may be Net 30.

What should saas invoices include in Sri Lanka?

Your invoice should include: VAT number, Business registration, Client details, VAT (18%). For saas services specifically, also include: Monthly subscription, Annual subscription, Usage-based charges.

How should SaaS companies invoice?

Include plan name, billing period, base price, overages, and total. Reference account ID.

How to handle usage-based billing?

Track usage throughout period. Invoice base plus overages with usage details.

What is Sri Lanka's VAT rate?

18% on most goods and services.