Microsoft Advertising will apply an 18% value-added tax (VAT) beginning July 1, 2026, for accounts in Sri Lanka lacking a valid VAT ID. Accounts with a valid VAT ID will remain exempt from this charge, aligned with local government regulations.
The changes also include updated guidance on billing practices, indicating that tax will now be required unless a valid VAT ID is provided. Step-by-step instructions for adding or updating a VAT ID have been added to the help page, which includes provisions for both single and multiple account updates. Notably, only Super Admins and Standard users can edit tax information.
Find the official announcement here: Microsoft Advertising Starts Charging VAT in Sri Lanka.