ICCSL Examines Business Readiness and Challenges of New VAT Invoice Implementation in Sri Lanka

• ICC Sri Lanka held a seminar to discuss the practical challenges and readiness for the new VAT invoice format effective from 1 April 2026.
• The event aimed to identify gaps, ambiguities, and propose solutions for smooth implementation, emphasizing the reform’s significant impact on business compliance and transaction documentation.
• Presentations covered the policy rationale for the changes, including revenue assurance, digital compliance, and anti-fraud measures, as well as new mandatory fields and legal requirements.
• Practical challenges highlighted included system/software readiness, transitional confusion, sector-specific issues, increased burden on SMEs, and risks like invoice rejection and higher compliance costs.
• Participants stressed the need for greater clarity and certainty in the new format before full implementation to avoid economic friction and unintended consequences.

Source: ft.lk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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