Sri Lanka: Notices in relation to simplified VAT scheme published
The Inland Revenue Department published public notices in relation to the simplified VAT scheme.
Share
October 1, 2025
The Inland Revenue Department (IRD) published the following public notices in relation to the simplified VAT (SVAT) scheme:
- Abolition of SVAT and introduction of risk-based vat refund scheme (RBRS) - PN/SVAT/2025-01 dated September 22, 2025 (Annexure 01): In terms of the Value Added Tax (VAT) Act, No. 14 of 2002 (as amended), the SVAT scheme will be removed with effect from October 1, 2025, and replaced by a risk-based refund scheme. The risk-based refund scheme aims to facilitate timely and efficient VAT refunds, for eligible exporters and projects. Under this scheme, refunds will be issued within 45 days from the last day of the month after expiry of such taxable period or from the date of furnishing a proper VAT return and relevant schedules for the relevant taxable period, whichever is later, depending on the VAT registrant’s risk categorization.
- Final SVAT schedule submission and transition - PN/SVAT/2025-02 dated September 22, 2025 (Annexure 02): The SVAT scheme will be repealed with effect from October 1, 2025. Therefore, registered identified purchasers (RIP) and registered identified suppliers (RIS) under the SVAT scheme are required to complete all outstanding SVAT schedules up to the taxable period ending on September 30, 2025, by October 31, 2025, through e-Services. Accordingly, the SVAT schedule submission time will be terminated with effect from November 1, 2025.
Read an October 2025 report prepared by the KPMG member firm in Sri Lanka