Sri Lanka’s Inland Revenue Department has reminded VAT taxpayers to pay July 2026 liabilities by 20 August and file their returns by 31 August, while highlighting time limits for claiming input tax credits.
Sri Lanka’s Inland Revenue Department (IRD) has reminded taxpayers that Value Added Tax (VAT) for July 2026 must be paid by 20 August, with the corresponding VAT return due online by 31 August.
The monthly filing applies under tax type code 70, with July 2026 identified by return period code 2631 and period code 26310.
Input tax credit limits
VAT paid on local purchases may be claimed against output tax in a taxable period ending within 12 months of the tax invoice date. The return containing the claim must be submitted before that period expires.
For imports, the corresponding limit is 24 months from the date of the Custom Declaration, and the claim must be included in a VAT return filed within that period.
Input tax credits may be disallowed if the relevant return is filed beyond the applicable 12-month or 24-month limit.
Late payments and returns
A cheque, bank draft or pay order realised after the payment deadline is treated as a late payment. Penalties apply to non-payment or late payment of taxes.
Taxpayers may also face penalties for failing to submit a VAT return or submitting an incorrect return, according to the notice issued by the Commissioner General of Inland Revenue.
This announcement was made on 13 August 2026.
