Revised VAT invoice format to become mandatory from October 1

Sri Lanka’s revised Value Added Tax invoice format will become mandatory from October 1, 2026, the Inland Revenue Department has announced.

The department has issued an Extraordinary Gazette notification setting out the requirements for implementing the new format.

The revised invoice system was initially due to take effect on July 1, but the Government postponed its implementation to give businesses and taxpayers more time to update their accounting and billing systems.

The new format was introduced on March 27 as part of efforts to streamline digital tax collection and improve transparency within the tax system.

The Inland Revenue Department said businesses had requested additional time to make the necessary changes to their accounting and invoicing software.

Businesses have therefore been instructed to ensure that their systems are fully updated before the revised VAT invoice format becomes compulsory on October 1.