Prepare, review, or classify transactions for a Sri Lanka VAT return for any client.
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Accountant-reviewed — general reference, not personal advice
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Accountant-reviewed. Reviewed by Lal kumarasiri on Jun 25, 2026. Review does not create a client relationship and is not a guarantee for any specific taxpayer or transaction.
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Quick reference table
| Field | Value | |---|---| | Country | Sri Lanka (Democratic Socialist Republic of Sri Lanka) | | Standard rate | 18% (effective 1 January 2024) | | Zero rate | 0% (exports, specified essential goods) | | Exempt | Financial services, healthcare, education, residential rent, unprocessed agriculture | | Return form | Monthly VAT return (via IRD e-filing) | | Filing portal | https://www.ird.gov.lk (IRD e-Services) | | Authority | Inland Revenue Department (IRD) | | Currency | LKR (Sri Lankan Rupee) | | Filing frequency | Monthly | | Deadline | Last business day of the month following the tax period | | Registration threshold | LKR 80 million per annum (or LKR 20 million per quarter) | | Companion skill | vat-workflow-base v0.1 or later — MUST be loaded | | Validated by | Pending local practitioner validation |
Conservative defaults
| Ambiguity | Default | |---|---| | Unknown rate on a sale | 18% | | Unknown VAT status of a purchase | Not deductible | | Unknown counterparty location | Domestic Sri Lanka | | Unknown business-use proportion | 0% recovery |
R-LK-1 — BOI enterprise
Trigger: client under Board of Investment agreement with tax holidays. Message: "BOI enterprises have bespoke tax exemptions. Please escalate."R-LK-1
R-LK-2 — Social Security Contribution Levy (SSCL) interaction
Trigger: SSCL applies alongside VAT. Message: "SSCL is a separate levy that may affect pricing and compliance. Verify current status (SSCL was suspended/reintroduced periodically)."R-LK-2
R-LK-3 — Simplified VAT regime
Trigger: client on simplified regime. Message: "Simplified VAT has different filing requirements. Please escalate."R-LK-3
Quick reference table
| Field | Value |
|---|---|
| Country | Sri Lanka (Democratic Socialist Republic of Sri Lanka) |
| Standard rate | 18% (effective 1 January 2024) |
| Zero rate | 0% (exports, specified essential goods) |
| Exempt | Financial services, healthcare, education, residential rent, unprocessed agriculture |
| Return form | Monthly VAT return (via IRD e-filing) |
| Filing portal | https://www.ird.gov.lk (IRD e-Services) |
| Authority | Inland Revenue Department (IRD) |
| Currency | LKR (Sri Lankan Rupee) |
| Filing frequency | Monthly |
| Deadline | Last business day of the month following the tax period |
| Registration threshold | LKR 80 million per annum (or LKR 20 million per quarter) |
| Companion skill | vat-workflow-base v0.1 or later — MUST be loaded |
| Validated by | Pending local practitioner validation |
Conservative defaults
| Ambiguity | Default |
|---|---|
| Unknown rate on a sale | 18% |
| Unknown VAT status of a purchase | Not deductible |
| Unknown counterparty location | Domestic Sri Lanka |
| Unknown business-use proportion | 0% recovery |
Minimum viable — bank statement for the month. Acceptable from: BOC (Bank of Ceylon), People's Bank, Commercial Bank, HNB (Hatton National Bank), Sampath Bank, Seylan Bank, DFCC, NDB, Nations Trust, or any other.
Sri Lankan banks pattern table
| Pattern | Treatment | Notes |
|---|---|---|
| BOC, BANK OF CEYLON | EXCLUDE for bank charges | Exempt |
| PEOPLES BANK, PEOPLE'S BANK | EXCLUDE for bank charges | Same |
| COMMERCIAL BANK, COMBANK | EXCLUDE for bank charges | Same |
| HNB, HATTON NATIONAL | EXCLUDE for bank charges | Same |
| SAMPATH, SEYLAN, NDB, DFCC | EXCLUDE for bank charges | Same |
| NATIONS TRUST | EXCLUDE for bank charges | Same |
| INTEREST, LOAN, REPAYMENT | EXCLUDE | Out of scope |
Government pattern table
| Pattern | Treatment | Notes |
|---|---|---|
| IRD, INLAND REVENUE | EXCLUDE | Tax payment |
| CUSTOMS, SRI LANKA CUSTOMS | EXCLUDE | Duty |
| EPF, ETF | EXCLUDE | Employee provident/trust fund |
| COMPANY REGISTRAR | EXCLUDE | Registration fee |
Utilities pattern table
| Pattern | Treatment | Notes |
|---|---|---|
| CEB, CEYLON ELECTRICITY | Domestic 18% | Electricity |
| LECO | Domestic 18% | Electricity (Colombo) |
| NWS&DB, NATIONAL WATER | Domestic 18% | Water |
| SLT, SRI LANKA TELECOM, DIALOG, MOBITEL | Domestic 18% | Telecoms |
| HUTCH, AIRTEL LK | Domestic 18% | Same |
Digital payments pattern table
| Pattern | Treatment | Notes |
|---|---|---|
| FRIMI, GENIE, IPAY | EXCLUDE for fees | Financial service |
SaaS pattern table
| Pattern | Treatment | Notes |
|---|---|---|
| GOOGLE, MICROSOFT, META, AWS | Self-assess 18% | Non-resident |
| ZOOM, SLACK, CANVA | Self-assess 18% | Same |
Payroll pattern table
| Pattern | Treatment | Notes |
|---|---|---|
| SALARY, WAGES | EXCLUDE | Outside VAT scope |
| OWN TRANSFER, INTERNAL | EXCLUDE | Internal |
| DIVIDEND | EXCLUDE | Out of scope |
| CASH WITHDRAWAL | TIER 2 — ask | Default exclude |
Input line: 05.04.2026 ; COLOMBO TRADING PVT ; CREDIT ; Invoice LK-041 ; LKR 1,180,000
Reasoning: Domestic. 18%. Net = LKR 1,000,000, VAT = LKR 180,000.
Example 1 result table
| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? |
|---|---|---|---|---|---|---|---|---|
| 05.04.2026 | COLOMBO TRADING | +1,180,000 | +1,000,000 | 180,000 | 18% | Output | N | — |
Input line: 15.04.2026 ; UK BUYER LTD ; CREDIT ; Tea export ; LKR 5,000,000
Example 2 result table
| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? |
|---|---|---|---|---|---|---|---|---|
| 15.04.2026 | UK BUYER LTD | +5,000,000 | +5,000,000 | 0 | 0% | Zero-rated | N | — |
Input line: 18.04.2026 ; AWS ; DEBIT ; Cloud hosting ; LKR -60,000
Example 3 result table
| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? |
|---|---|---|---|---|---|---|---|---|
| 18.04.2026 | AWS | -60,000 | -60,000 | 10,800 | 18% | Output + Input | N | — |
Input line: 30.04.2026 ; BOC ; DEBIT ; Monthly charge ; LKR -1,000
Example 4 result table
| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? |
|---|---|---|---|---|---|---|---|---|
| 30.04.2026 | BOC | -1,000 | — | — | — | — | N | "Exempt" |
Per vat-workflow-base Section 3, with Sri Lanka fields: Output 18%, Zero-rated, Exempt, Input domestic, Input imports, Net VAT.
BOC, People's Bank, Commercial Bank exports CSV/PDF. LKR primary. Sinhala/Tamil descriptions possible. Internal transfers: exclude. Convert foreign currency at CBSL rate.
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Review status
Accountant-reviewed
Reviewed by a named licensed practitioner against the stated sources, as general reference material.
Accountant-reviewed
Reviewed by Lal kumarasiri · 25 June 2026
A named accountant reviewed this complete Guide version within the stated scope. It is not a guarantee.
View review record →Other Sri Lanka computations in the OpenAccountants Tax Library.
Sri Lankan banks pattern table
| Pattern | Treatment | Notes | |---|---|---| | BOC, BANK OF CEYLON | EXCLUDE for bank charges | Exempt | | PEOPLES BANK, PEOPLE'S BANK | EXCLUDE for bank charges | Same | | COMMERCIAL BANK, COMBANK | EXCLUDE for bank charges | Same | | HNB, HATTON NATIONAL | EXCLUDE for bank charges | Same | | SAMPATH, SEYLAN, NDB, DFCC | EXCLUDE for bank charges | Same | | NATIONS TRUST | EXCLUDE for bank charges | Same | | INTEREST, LOAN, REPAYMENT | EXCLUDE | Out of scope |
Government pattern table
| Pattern | Treatment | Notes | |---|---|---| | IRD, INLAND REVENUE | EXCLUDE | Tax payment | | CUSTOMS, SRI LANKA CUSTOMS | EXCLUDE | Duty | | EPF, ETF | EXCLUDE | Employee provident/trust fund | | COMPANY REGISTRAR | EXCLUDE | Registration fee |
Utilities pattern table
| Pattern | Treatment | Notes | |---|---|---| | CEB, CEYLON ELECTRICITY | Domestic 18% | Electricity | | LECO | Domestic 18% | Electricity (Colombo) | | NWS&DB, NATIONAL WATER | Domestic 18% | Water | | SLT, SRI LANKA TELECOM, DIALOG, MOBITEL | Domestic 18% | Telecoms | | HUTCH, AIRTEL LK | Domestic 18% | Same |
Digital payments pattern table
| Pattern | Treatment | Notes | |---|---|---| | FRIMI, GENIE, IPAY | EXCLUDE for fees | Financial service |
SaaS pattern table
| Pattern | Treatment | Notes | |---|---|---| | GOOGLE, MICROSOFT, META, AWS | Self-assess 18% | Non-resident | | ZOOM, SLACK, CANVA | Self-assess 18% | Same |
Payroll pattern table
| Pattern | Treatment | Notes | |---|---|---| | SALARY, WAGES | EXCLUDE | Outside VAT scope | | OWN TRANSFER, INTERNAL | EXCLUDE | Internal | | DIVIDEND | EXCLUDE | Out of scope | | CASH WITHDRAWAL | TIER 2 — ask | Default exclude |
Example 1 result table
| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | |---|---|---|---|---|---|---|---|---| | 05.04.2026 | COLOMBO TRADING | +1,180,000 | +1,000,000 | 180,000 | 18% | Output | N | — |
Example 2 result table
| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | |---|---|---|---|---|---|---|---|---| | 15.04.2026 | UK BUYER LTD | +5,000,000 | +5,000,000 | 0 | 0% | Zero-rated | N | — |
Example 3 result table
| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | |---|---|---|---|---|---|---|---|---| | 18.04.2026 | AWS | -60,000 | -60,000 | 10,800 | 18% | Output + Input | N | — |
Example 4 result table
| Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | |---|---|---|---|---|---|---|---|---| | 30.04.2026 | BOC | -1,000 | — | — | — | — | N | "Exempt" |
Standard rate
18%
Zero rate
0%
Exempt supplies
Financial services, healthcare, education, residential rent, unprocessed agriculture
Input tax credit
Valid tax invoice with TIN required. Business purpose. Apportionment if mixed.
Blocked input
Personal consumption, entertainment, passenger vehicles
Imports
VAT at 18% on CIF plus duty
Reverse charge
Non-resident services: self-assess 18%
Registration threshold
LKR 80M/year or LKR 20M/quarter
Vehicle costs
Default: 0%
Entertainment
Default: block
SaaS entities
Default: self-assess 18%
BOI enterprise status
Default: flag. Question: "BOI agreement in force?"
SSCL interaction
Default: flag. Question: "Is SSCL currently in force?"
Cash withdrawals
Default: exclude
TIN
"What is your IRD TIN?"
Filing period
Monthly. "Which month?"
Industry
"What does the business do?"
Exports
"Do you export?"
BOI status
"Are you under a BOI agreement?"
Credit brought forward
Always ask
Rendered from the canonical facts model · facts last reviewed Jun 25, 2026. General reference only — confirm with a qualified professional before acting.
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