VAT & Indirect
Published: 15 September 2026
Value Added Tax (VAT) at 18%: Thresholds, Exemptions and Filing Calendar
IRD ReferenceVAT Circular No. ACT/VAT/2024-01
Effective Date01 January 2024
Statutory AuthorityInland Revenue Department
Comprehensive regulatory overview of Sri Lanka Value Added Tax (VAT) standard rate of 18%, mandatory registration thresholds, monthly/quarterly return deadlines, and input tax credit mechanics.
Key Statutory Takeaways for Taxpayers
- 1Standard VAT rate remains maintained at 18%.
- 2Mandatory registration threshold applies to taxable supplies exceeding Rs. 60,000,000 per annum (Rs. 15,000,000 per quarter).
- 3Simplified VAT (SVAT) scheme available for qualified registered exporters.
- 4Monthly VAT payments due by the last day of the month following the taxable period.
The Department of Inland Revenue enforces strict compliance for enterprises liable to Value Added Tax (VAT). Businesses exceeding the statutory turnover threshold must register with the IRD and issue compliant tax invoices.
### SVAT Scheme for Exporters
Direct exporters and registered suppliers to exporters can leverage the Simplified VAT (SVAT) mechanism to preserve working capital and eliminate refund bottlenecks.
UNIG GLOBAL provides end-to-end VAT diagnostic audits, SVAT registration, and monthly return filing to ensure complete compliance.
RM
View Partner Profile →Expert Statutory AuthorRoshan Mahendra Marcus, Chartered Accountant
Managing Partner, UNIG GLOBAL. Specializing in Sri Lankan Inland Revenue Act interpretation and corporate tax structuring.
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