The Inland Revenue Department has delayed implementation of a revised VAT invoice format to October 1, 2026, pushing back the original July deadline to allow businesses more time to update their systems.
Sri Lanka's Inland Revenue Department announced that a redesigned Value Added Tax invoice format will become compulsory from October 1, 2026, according to a notification published in the Extraordinary Gazette. The postponement represents a three-month extension from the originally scheduled July 1 implementation date.
The revised format was first introduced in March with the stated goal of improving digital tax collection and increasing transparency across the taxation system. However, the department acknowledged requests from the business community for additional preparation time, citing the need for companies to update their accounting and billing software systems to meet the new specifications.
According to the Inland Revenue Department, the modernized invoice format is designed to address multiple tax administration challenges. The new system aims to prevent the circulation of fraudulent invoices, enable real-time monitoring of transactions, and reduce instances of tax revenue loss. Businesses have been instructed to ensure their accounting and invoicing systems comply with the requirements before the October deadline takes effect.
The extended timeline provides organizations across sectors approximately nine months from the initial announcement to adjust their technical infrastructure and operational procedures in alignment with the department's specifications.
