New VAT Invoice Format Implementation Deferred to July 2026

The implementation of the new standardized Value Added Tax (VAT) invoice format and specifications has been postponed by three months by the Commissioner General of Inland Revenue. Initially set for January 1, 2026, under Extraordinary Gazette Notification No. 2463/05 dated November 17, 2025, it was first deferred to April 1, 2026, due to practical issues and requests from VAT-registered businesses. The latest decision moves the effective date to July 1, 2026, with an amendment to the gazette notification expected. This change affects all individuals and entities registered for VAT. Separately, the annual turnover limit for VAT registration has been reduced from LKR 60 million to LKR 36 million, aiming to expand the tax base.