The Department of Inland Revenue has issued a critical update regarding Value Added Tax (VAT) administration. Per Gazette Extraordinary No. 2463/05, dated November 17, 2025, the Commissioner General of Inland Revenue (CGIR) has specified a mandatory format and specification for Tax Invoices. Subsequently, the Department of Inland Revenue has officially announced a postponement of the…
Sri Lanka is taking a significant step in modernizing its tax system with the introduction of Value Added Tax (VAT) on digital services supplied by non-resident persons through electronic platforms to Sri Lankan consumers. This reform, effective from 01 October 2025, was formalized under the Gazette Notification No. 2443/30 dated 01 July 2025 and the…
A tax invoice is an essential document in the administration of Value Added Tax (VAT) in Sri Lanka. It serves as evidence of a taxable transaction between a VAT-registered supplier and customer. Understanding the key elements of a tax invoice and the regulations surrounding its issuance is crucial for compliance with Sri Lankan tax laws….
The Inland Revenue Department (IRD) of Sri Lanka has issued a critical notice for VAT registered persons who have faced difficulties in obtaining Credit Vouchers for the clearance of deferred VAT at Customs. This issue has primarily arisen due to the issuance of Estimated Assessments on Value Added Tax (VAT) Returns. To address this, the…
The circular, identified as Circular No. SEC/2024/E/01 and dated January 4, 2023, addresses suppliers involved in the production of tea, rubber, and coconut products. The primary focus of the circular is on the registration process under the Value Added Tax (VAT) and the Simplified Value Added Tax Scheme. The circular outlines the specific industries that…
Note: This form to be submitted along with supporting documents (If any) to the Help Desk at the nearest IRD branch.
The Bill to amend the VAT Act was published on August 11, 2023, and the EY Tax Alert dated September 11, 2023, highlighted the proposed changes based on this Bill. Subsequently, during its passage through Parliament, a few significant changes were made, and the Bill was finally passed in Parliament on December 11, 2023, with…
History of General VAT Rate change in Sri Lanka from 2002 to date. Period Type Rate Rates applicable from 01.08.2002 to 31.12.2003 01.08.2002 – 31.12.2003 Reduce – 2nd Sch. 10% Standard – All other 20% Rates applicable from 01.01.2004 to 31.12.2008 01.01.2004 – 18.11.2004 Single Rate – 3rd Sch. 15% 19.11.2004 – 31.12.2004 Basic Rate – 3rd Sch….
Minister of Finance has published a gazette notification on VAT rate change on the following. Order declares that : The Value Added Tax shall be charged ; On import of goods set out in the H. S. Code and description specified in Column I and II of Schedule of the Extraordinary Gazette Notification No. 2095/20…
The government has issued an amendment to the Value Added Tax Act No 14 of 2002. The Value Added Tax (Amendment) Act was certified on 31 March 2022 by the Hon. Speaker. Download Value Added Tax (Amendment) Act No. 13 of 2022 – English | Sinhala
Department of Inland Revenue has uploaded updated Schedules 6 & 7 for Exports. Download Schedule 06 – Goods Export Schedule Download Schedule 07 – Service Export Schedule
The government has issued an amendment to the Value Added Tax Act No 14 of 2002. The Value Added Tax (Amendment) Act was passed in Parliament on 4 May 2021 and certified on 13 May 2021 by the Hon. Speaker. Download Value Added Tax (Amendment) Act No. 9 of 2021 – English | Sinhala EY Tax Alert | A Bill to…
The Government has published bills to amend the Income Tax and VAT Act. These bills subject to pass by the parliament and certify by the Hon. Speaker. Income Tax Income Tax (Amendment) Bill – English Income Tax (Amendment) Bill – Sinhala VAT VAT (Amendment) Bill – English VAT (Amendment) Bill – Sinhala
Department of Inland Revenue has introduced new VAT schedules for Export of Goods and Services. These schedules are effective for all transactions from 01 April 2021. Schedule 06 – Goods Export Schedule Schedule 07 – Service Export Schedule