VAT refund seekers must file electronically from July 1: IRD

In taking a leap towards digitalisation and efficiency, the Inland Revenue Department (IRD) has announced that all taxpayers seeking Value Added Tax (VAT) refunds will be required to file their returns electronically, effective July 1, 2025. 

This new measure is part of a broader strategy to streamline the refund process and minimise delays, said IRD Commissioner of the Risk Management Unit Priyanka Dissabandara.

Addressing exporters at a recent seminar in Colombo, Dissabandara outlined a series of reforms aimed at modernising the VAT system.  “For any taxable period commencing on or after July 1 next year, VAT returns must be submitted by electronic means no later than the last day of the month following the end of that period,” she said. Upon successful electronic submission through the Revenue Administration Management Information System (RAMIS), taxpayers will receive an immediate acknowledgement, ensuring certainty and a clear audit trail. To further reduce inconsistencies, the IRD is taking proactive steps to minimise mismatches arising from immaterial reasons and discrepancies with Sri Lanka Customs data. A key measure, as per Section 20 of the amended VAT Act, will be the introduction of a standardised format for all tax invoices.

“The format of the tax invoice shall be as specified by the Commissioner General by order published in the Gazette,” Dissabandara explained, a move intended to bring uniformity and clarity to tax documentation.

Highlighting the importance of inter-agency collaboration, Dissabandara confirmed that discussions have been held with officials from Sri Lanka Customs to tackle data disparities. As a result of these talks, an agreement has been reached to provide taxpayers with the facility to view the same Customs data that the IRD uses for verification. 

“To ensure a smooth transition, we will be conducting joint awareness programmes for taxpayers with Sri Lanka Customs,” she added. (NF)