Sri Lanka’s Inland Revenue Department has set 20 September 2026 as the deadline for VAT payments for August and 30 September 2026 for online VAT return filing. The department also warned that input tax credits could be disallowed if returns were not submitted within specified time limits.
Sri Lanka’s Inland Revenue Department (IRD) has issued a VAT Compliance notice setting out the payment and filing requirements for the August 2026 tax period.
VAT payments for August 2026 must be made on or before 20 September 2026, while the corresponding VAT return must be submitted online by 30 September 2026. VAT filing is required every month.
Payment and filing requirements
The notice identifies the Tax Type Code as 70, the Payment Period Code as 26320 for August, and the Return Period Code as 2632.
The IRD stated that payments made by cheque, bank draft or pay order would be treated as late payments if the funds were realised after the applicable deadline.
Penalties may apply for non-payment or late payment of taxes, failure to submit a return, or submission of an incorrect return.
Input tax credit time limits
The notice also sets out time limits for claiming input tax credits on purchases and imports.
For local purchase invoices, VAT paid must be claimed against output tax by furnishing the relevant VAT return before the expiry of 12 months from the date of the tax invoice.
For imports, VAT paid must be claimed against output tax by furnishing the relevant VAT return before the expiry of 24 months from the date of the Customs Declaration.
The IRD warned that failure to submit the relevant VAT return within these prescribed periods would result in the disallowance of the input tax credit.
Taxpayers can contact the IRD through its hotline at 1944 or access the department’s website for further information.
