Tax Updates

Summary of Sri Lanka's VAT Tax Invoice Specification (Effective January 1, 2026)

This document is an official government notification from the Gazette of the Democratic Socialist Republic of Sri Lanka (No. 2463/05, dated November 17, 2025), issued by the Commissioner General of Inland Revenue under the Value Added Tax Act, No. 14 of 2002. It mandates a standardized format for Tax Invoices issued by VAT-registered persons for taxable supplies, starting January 1, 2026. The format can be amended as needed. Below is a breakdown of the key requirements:

1. Title and Heading

Must be prominently titled "Tax Invoice" in bold or highlighted text at the top.

2. Supplier Details (Top Left Corner, as per VAT Registration Certificate)

Taxpayer Identification Number (TIN)

Supplier's name

Address

Telephone number

3. Purchaser Details (Top Right Corner, as per VAT Registration Certificate)

Purchaser's TIN

Purchaser's name

Address

Telephone number

4. Invoice Details (Minimum Required Information)

Invoice Serial Number: Follows format YYMMM_QQQQ_XXXXX (max 40 characters, no spaces):

YY: Last two digits of the calendar year (e.g., 26 for 2026)

MMM: First three uppercase letters of the month (e.g., JAN)

QQQQ: Alphanumeric code for branches, units, etc. (e.g., BR03)

XXXXX: Numeric serial number (e.g., 1)

Example: 26JAN_BR03_1 for the first invoice in January 2026 from Branch 03.

Date of Invoice: In MM/DD/YYYY format.

Place of Supply: Location where goods/services originate.

Date of Delivery: In MM/DD/YYYY format.

Description of Supply: Clear details of goods/services.

Quantity or Volume: Measurable amount supplied.

Value of Supply (in Sri Lankan Rupees - LKR, without cents):

Net amount (exclusive of VAT)

VAT charged (sample uses 18% rate)

Total consideration (including VAT)

Total consideration in words

Mode of Payment: E.g., Cash, Bank Transfer, Cheque, Credit/Debit Card, Mobile Payment, or Online Payment.

5. Additional Information

Include any specific details related to the supply (optional).

6. Issuance and Record-Keeping

Original invoice issued to purchaser.

Supplier retains a "Duplicate" copy.

Both parties must keep records for at least 5 years from the end of the taxable period.

Records must maintain integrity and accessibility per VAT Act and audit rules.

Invoice must only include VAT-subject goods/services.

7. Validity of Tax Invoice Requests

A written request within 14 days of supply is valid for all future supplies between the same supplier and purchaser—no repeat requests needed.