IRD has reminded taxpayers that Value Added Tax (VAT) for the period ending 31 March 2026 must be paid by 20 April 2026 and returns filed by 30 April 2026, reiterating that penalties for late payment or non-compliance will not be waived and setting out strict rules for input tax credit claims.
Sri Lankan Inland Revenue Department (IRD) has issued a formal reminder to taxpayers regarding Value Added Tax (VAT) obligations for the period ending 31 March 2026, reaffirming strict compliance requirements for payments, return submissions, and input tax credit claims under national fiscal regulations.
The IRD stated that VAT payments for March 2026 must be made on or before 20 April 2026, while VAT Returns must be furnished on or before 30 April 2026. The notice specifies Tax Type Code 70 and Period Code 26130 for the relevant reporting period. It also sets out Return Period Code 2610 for monthly filers (March) and Return Period Code 2613 for quarterly filers (quarter ending March).
The Department emphasised that payments made via cheque, bank draft, or pay order that are realised after the due date will be treated as late payments. It further stated that penalties for non-payment or late payment of VAT will not be waived or reduced under any circumstances, with additional penalties applicable for failure to submit returns or submission of incorrect returns.
On input tax credits, the IRD clarified that credits on domestic purchases must be claimed within 12 months from the date of the tax invoice, while credits on imports must be claimed within 24 months from the date of the Customs Declaration. It added that input tax credits will be disallowed if a VAT return is filed late by 12 or 24 months, depending on the category, from the due date.
The IRD advised taxpayers to ensure proper use of filing frequencies and period codes to maintain compliance.
