The national budget for 2015-16 has proposed 4% VAT on trading goods and services online.
Finance Minister AMA Muhith has placed the budget proposal before the parliament on Thursday afternoon.
In his speech, the minister stated that although no exact definition of this service is currently there in the existing VAT system.
"Hence, I propose to define this service under the VAT system as well as propose to impose VAT at the rate of 4% on this service sector," Muhith said.