01/06/2026
📢 URGENT NOTICE TO ALL VAT-REGISTERED BUSINESSES IN SRI LANKA
The Inland Revenue Department (IRD) has issued Circular SEC/2026/E/03 introducing a Revised VAT Tax Invoice Format, which becomes mandatory from 1 July 2026.
All VAT-registered persons must ensure their invoicing systems, accounting software, ERP platforms, and manual invoice books are updated before the implementation date.
Key Mandatory Requirements
✅ Invoice must clearly display "TAX INVOICE"
✅ Supplier Details (as per VAT Registration Certificate)
• TIN (9 digits)
• Registered Business Name
• Registered Address
✅ Purchaser Details (where purchaser is VAT registered)
• TIN
• Name
• Address
✅ New Mandatory Invoice Number Format:
YYMMM_QQQQ_###XX
Example:
26JUL_MAIN_00001
Where:
• YY = Year (26)
• MMM = Month (JUL)
• QQQQ = Branch / Department / Customer / Project / Invoice Type Identifier
• ###XX = Sequential Number
⚠️ Important:
• No spaces allowed in invoice numbers
• Maximum length: 40 characters
• QQQQ can contain 1–15 letters, numbers, or a combination
• Sequential numbering must be maintained
Two Dates Are Now Required
📅 Invoice Date
📅 Date of Supply
These dates may differ and must be clearly shown on every Tax Invoice.
Description & Quantity Requirements
Invoices must contain specific descriptions of goods or services supplied.
❌ Avoid:
• Items
• Products
• Services
• Miscellaneous
✅ Use:
• Laptop Computer Model XYZ
• Accounting Consultancy Services
• Website Development Services
• Office Chair Model ABC
Quantity must also be stated using appropriate units such as:
• Pieces
• Kilograms
• Litres
• Metres
• Hours
• Days
• Packages or Cartons
VAT Breakdown Is Mandatory
Every Tax Invoice must separately show:
1️⃣ Value of Supply (Excluding VAT)
2️⃣ VAT Amount Charged
3️⃣ Total Value (Including VAT)
All values must be shown in Sri Lankan Rupees (LKR) with two decimal places.
Foreign Currency Invoices
Businesses authorized by the Central Bank to invoice in foreign currency must additionally show:
• Value of Supply in LKR
• VAT Amount in LKR
• Total Value in LKR
using the applicable Central Bank selling exchange rate on the invoice date.
Supplies That Can Be Included
✅ VAT Taxable Supplies
⚠️ Exempt or Out-of-Scope Supplies should generally not be included in a Tax Invoice unless directly related to the taxable supply and separately disclosed.
Special ERP / RAMIS API Provision
Businesses intending to integrate their ERP systems with RAMIS through the IRD Web API may apply for approval from the Commissioner General before 1 July 2026.
Upon approval and successful integration by 31 December 2026, the mandatory invoice numbering prefix requirements may be relaxed.
Consequences of Non-Compliance
❗ Rejection of Input VAT Claims
❗ VAT Return Discrepancies
❗ Increased Audit Exposure
❗ Possible Penalties under the VAT Act
📌 Action Required Now:
Review your invoice templates, accounting software, ERP systems, POS systems, and billing procedures to ensure full compliance before 1 July 2026.
