VATCalculate VAT in Sri Lanka
Work out Sri Lanka's VAT in one step: enter a net or gross price in LKR and get the tax amount and the total at 18%.
Sri Lanka VAT
VAT rates in Sri Lanka
There is only one VAT rate in Sri Lanka: 18%. Supplies are either taxed at that rate, zero-rated or exempt. The standard rate is above the Asia average of 12.1% and shared with 22 other countries in our list.
| Rate | Type |
|---|---|
| 18% | Standard rate |
Official source: ird.gov.lk. Rates checked October 2026.
How to calculate VAT in Sri Lanka
Adding VAT to a net price
VAT = net × 18 / 100
Gross = net × 1.18
Removing VAT from a gross price
Net = gross / 1.18
VAT = gross − net
A common mistake is to take 18% off the gross price. That gives the wrong figure: the VAT inside a gross price is only 15.25% of it.
VAT examples in LKR
Common amounts with 18% VAT added:
| Net | VAT 18% | Gross |
|---|---|---|
| 1,000.00 LKR | 180.00 LKR | 1,180.00 LKR |
| 5,000.00 LKR | 900.00 LKR | 5,900.00 LKR |
| 10,000.00 LKR | 1,800.00 LKR | 11,800.00 LKR |
| 50,000.00 LKR | 9,000.00 LKR | 59,000.00 LKR |
| 100,000.00 LKR | 18,000.00 LKR | 118,000.00 LKR |
| 1,000,000.00 LKR | 180,000.00 LKR | 1,180,000.00 LKR |
Removing VAT from gross prices
| Gross | Net | VAT |
|---|---|---|
| 5,900.00 LKR | 5,000.00 LKR | 900.00 LKR |
| 11,800.00 LKR | 10,000.00 LKR | 1,800.00 LKR |
| 59,000.00 LKR | 50,000.00 LKR | 9,000.00 LKR |
| 118,000.00 LKR | 100,000.00 LKR | 18,000.00 LKR |
Questions about VAT in Sri Lanka
What is the VAT rate in Sri Lanka?
The standard VAT rate in Sri Lanka is 18%.
How do I add 18% VAT to a price?
Multiply the net price by 1.18. For example 50,000.00 LKR × 1.18 = 59,000.00 LKR.
How do I remove VAT from a gross price in Sri Lanka?
Divide the gross price by 1.18. For example 59,000.00 LKR ÷ 1.18 = 50,000.00 LKR net; the difference is the VAT.
How much of a LKR price is VAT?
At 18%, VAT makes up 15.25% of the gross price (18 ÷ 118).