If you or your customers operate in Sri Lanka, there's a new VAT requirement that takes effect April 1, 2026. All digital service invoices from nonresident companies — including Microsoft — will include 18% VAT.
What's Happening
Under Sri Lanka's updated VAT regulations (Value Added Tax Act Amendment No.4 of 2025), nonresident providers of digital services must charge 18% VAT on invoices to Sri Lankan customers.
This applies to all CSP partners and customers in Sri Lanka purchasing services from nonresident Microsoft entities.
What You Need to Do
Submit your valid Sri Lankan VAT ID to Microsoft before March 20, 2026.
You can submit via:
- Microsoft VAT submission form
- Partner Center directly:
- Partner billing profile → Billing profile
- Reseller billing profile → Legal information
Why It Matters
Invoices without a VAT ID will still include the 18% VAT — but customers won't be able to claim credits. Don't leave money on the table.
Microsoft relies on the information you submit and won't independently validate the VAT ID, so make sure it's correct.
Key Dates
- March 20, 2026 — Deadline to submit VAT ID
- April 1, 2026 — 18% VAT enforcement begins
Questions? Contact your Microsoft representative or your local tax advisor.
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