The Cabinet has granted approval to postpone the implementation of Value Added Tax (VAT) on digital services supplied by non-resident providers. Originally, under the Value Added Tax (Amendment) Act No. 4 of 2025, VAT on digital services provided by non-residents was scheduled to take effect from 1 October 2025.

However, several practical considerations were raised by non-resident digital service providers, requesting additional time to ensure compliance with the new tax requirements. In response, the Cabinet, acting on a proposal from the Minister of Finance, Procurement, and Economic Development, has approved rescheduling the effective date for VAT on digital services to 1 April 2026.

The necessary amendments to the VAT Act and related regulations are already being drafted to reflect this change.