Invoicing and Tax regulation in Sri Lanka

Invoicing Regulation

In Sri Lanka, the Invoice Regulations require businesses to issue tax invoices for any supply made, generally within 30 days. It's mandatory for any registered businesses, regardless whether it's business-to-business (b2b), business-to-consumer (b2c), or business-to-government (b2g).

Real-time Reporting / Fiscalization

Real-time reporting or fiscalization is not currently compulsory in Sri Lanka. However, businesses are required to maintain proper bookkeeping records and these records may be requested by the tax authorities.

E-invoicing

The concept of E-invoicing is not yet widely adopted in Sri Lanka. While it’s not mandatory, many businesses, especially those operating internationally, are shifting towards it to streamline their billing processes.

VAT/GST/Tax Compliance

For businesses operating in Sri Lanka, Value Added Tax (VAT) is compulsory. The standard VAT rate is 15% and applies to most of the goods and services. Companies are also required to register for Goods and Services Tax (GST) if their annual turnover exceeds Rs. 12 million. Undertaking proper VAT/GST management is critical to assure tax compliance in Sri Scotia.

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