# VAT Calculator for Sri Lanka - Add or Remove 18% VAT

Page: https://hirantha.me/tools/vat-calculator
Part of: Hirantha Sandaruwan Lakshan free tools (https://hirantha.me/tools)
Updated: 2026-10-13

Add VAT to a price or take it out of a price that already includes it. Starts at the 18% rate in force since 1 January 2024; you can change it.

This is a free tool that runs in the browser: open the page to use it. File tools process files on the visitor's own device; files are never uploaded or stored. No account, sign-up, payment or watermark.

Add VAT to a price, or take it out of a price that already includes it, and see the VAT as its own line. The rate starts at 18%, the Sri Lankan standard rate for taxable periods from 1 January 2024, and you can change it for older invoices or zero-rated sales. All the arithmetic is done in whole cents in your browser, and nothing is sent anywhere.

To add VAT, the VAT is the price without VAT multiplied by the rate. Rs. 10,000 at 18% carries Rs. 1,800 of VAT, so the price with VAT is Rs. 11,800. To remove VAT, the VAT is the price with VAT multiplied by rate / (100 + rate). The Value Added Tax Act states that fraction for each standard rate: 9/59 at 18%, 3/23 at 15% and 3/28 at 12%. Rs. 11,800 x 9/59 is Rs. 1,800, so the price without VAT is Rs. 10,000.

The standard rate has changed four times in recent years: 8% from 1 December 2019, 12% from 1 June 2022, 15% from 1 September 2022 and 18% from 1 January 2024. The Inland Revenue Department's notice of 28 December 2023 adds one transition rule: an advance payment made before 1 January 2024 for goods or services received on or after that date is charged at 15%. The quick rate buttons offer 18%, 15% and 0%. Type any other rate into the box.

The VAT is rounded to the nearest cent, with half a cent rounded up, and the other figures are worked from it so the three always add up. Adding VAT and then removing it always gives back the price you started with. Going the other way, some prices with VAT cannot come from a whole-cent price, and an invoicing system that rounds line by line can differ from this total by a cent.

A business has to register for VAT when its taxable supplies pass Rs. 15 million in a taxable period or Rs. 60 million in twelve months, or when there are reasonable grounds to expect they will pass those limits in the next period. That is section 10(1)(viii) of the VAT Act, added by Act No. 16 of 2024, and the Inland Revenue Department's VAT page lists the same limits. The later VAT (Amendment) Act, No. 14 of 2026 (certified 30 June 2026) does not change the standard rate or these limits; it changes other parts of the Act, such as the rate for financial services. This tool applies one rate to one amount. It does not handle invoices that mix rates, exempt supplies or financial services, which have their own rules.

Standard VAT rate in Sri Lanka by period:
| Period | Standard rate | VAT as a fraction of the price with VAT |
| --- | --- | --- |
| From 1 January 2024 | 18% | 9/59 |
| 1 September 2022 to 31 December 2023 | 15% | 3/23 |
| 1 June 2022 to 31 August 2022 | 12% | 3/28 |
| 1 December 2019 to 31 May 2022 | 8% | 2/27 (8 divided by 108) |

Q: What is the VAT rate in Sri Lanka?
A: The standard rate is 18% for taxable periods from 1 January 2024. It was announced in Extraordinary Gazette No. 2363/22 of 19 December 2023 and written into section 2 of the VAT Act by the Value Added Tax (Amendment) Act, No. 16 of 2024. Exports of goods and services are zero-rated, with conditions. Check the Inland Revenue Department if you are unsure which rate applies to your goods or services.

Q: How do I find the price without VAT?
A: Divide the price with VAT by 1.18. Rs. 11,800 / 1.18 = Rs. 10,000, and the VAT is the difference, Rs. 1,800. The calculator does this for any rate and rounds the VAT to the cent.

Q: Why is the VAT not 18% of the price with VAT?
A: Because the 18% applies to the price before VAT, not to the total. Seen from the total, VAT is 18 parts in 118, which is 9/59 or about 15.25%. Taking 18% of Rs. 11,800 would give Rs. 2,124, which is too much.

Q: Which rate applies to an advance payment made before 1 January 2024?
A: The Inland Revenue Department's notice PN/VAT/2023-02 says an advance payment made before 1 January 2024 for goods or services received on or after that date is charged at 15%. Use the 15% button for that case.

Q: Does a business have to register for VAT?
A: Registration is required when taxable supplies exceed Rs. 15 million in a taxable period or Rs. 60 million in twelve months, or are reasonably expected to exceed them in the next period (VAT Act, section 10(1)(viii), added by Act No. 16 of 2024, and not changed by Act No. 14 of 2026). Voluntary registration is also possible. Financial services have lower limits. This is general information, not tax advice.

Q: Does the calculator include other taxes?
A: No. It calculates VAT only. Other taxes or levies that may apply to a sale are not included, and financial services have their own rules, and since 1 July 2026 their own rate of 20.5% (Act No. 14 of 2026), so do not use this tool for them.

Q: Why does my invoice differ by one cent?
A: This tool rounds the VAT on the whole amount to the nearest cent. An invoicing system that rounds each line, or rounds down, can land one cent away. Use the figures your system prints on the invoice.

Sources: Value Added Tax (Amendment) Act, No. 16 of 2024, Inland Revenue Department copy (checked 13 October 2026) (https://www.ird.gov.lk/en/publications/Value%20Added%20Tax_Acts/VAT_(Amd)_Act_No_16%20of%202024_E.pdf); Value Added Tax (Amendment) Act, No. 14 of 2026, certified 30 June 2026, Inland Revenue Department copy (checked 13 October 2026) (https://www.ird.gov.lk/en/publications/Value%20Added%20Tax_Acts/VAT_Act_No_14-2026_E.PDF); Value Added Tax Act, No. 14 of 2002, consolidated text to 31 December 2025, section 2 (rates and tax fractions), Inland Revenue Department (checked 13 October 2026) (https://www.ird.gov.lk/en/publications/Value%20Added%20Tax_Acts/VAT_Act_No_14%5BE%5D_2002_(Consolidation_2025).pdf); Inland Revenue Department notice PN/VAT/2023-02, Change of VAT rate, 28 December 2023 (checked 13 October 2026) (https://www.ird.gov.lk/en/Lists/Latest%20News%20%20Notices/Attachments/557/PN_VAT_2023-02_28122023_E.pdf); Inland Revenue Department, Value Added Tax page: rates and registration limits (checked 13 October 2026) (https://www.ird.gov.lk/en/type%20of%20taxes/sitepages/value%20added%20tax%20(vat).aspx)

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