9. Amendment of section 26 of the principal enactment

Section 26 of the principal enactment is hereby amended by the insertion immediately after subsection (1A)

of that section of the following new subsection: -

“(1B) Notwithstanding the provisions of subsection (1) of this section, in the case of a non-resident person who supplies services through an electronic platform to a person in Sri Lanka, the tax in respect of any taxable period, payable on such supply shall be paid in such manner as may be prescribed and subject to the procedure which may be specifi ed by the Commissioner-General.

Any tax not paid as set out above shall be deemed to be in default and the person by whom such tax is payable or where any tax is payable by more than one person, each such person shall be deemed to be a defaulter for the purposes of this Act.

For the purposes of this subsection-

“electronic platform” means, any procedure in the form of a website or mobile application used by one or more service providers to provide their services to the service recipients;

“fi xed place” means, a place which is characterized by a suffi cient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs;

“non-resident person” means, any person who occasionally undertakes transactions involving supply of services, whether as principal or agent or in any other capacity, but who has no fi xed place of business in Sri Lanka, and does not include a person registered under section 10, where such person carries on or carries out a taxable activity in Sri Lanka without a fi xed place of business but having an agent to act on behalf of such person as referred to in section 55.”.