IRD on track for new risk-based refund system launch in October

By Nishel Fernando

The Inland Revenue Department (IRD) says the new proposed new risk-based refund system replacing current SVAT system is on track to go live from October onwards despite reservations from exporters.

An IRD official confirmed that 77 percent of the work required to implement the new system has been completed. The SVAT Repeal Committee within the IRD has been working in five teams to facilitate the rollout of the new process.

Under the proposed risk-based system, companies will be categorized as high, medium, or low risk. Notably, medium and low-risk companies will benefit from a streamlined process, receiving their VAT refunds without requiring pre-verification within a 45-day timeframe.

The IRD is proceeding with the implementation despite ongoing concerns from the export sector, which has relied on the SVAT system for smoother cash flow management.