Key Points Businesses Should Know Now

The Inland Revenue Department (IRD) has issued Notice No. SEC/PN/VAT/2026-03 dated 04.05.2026 regarding the implementation of the National e-Invoicing System and WEB API integration with RAMIS for VAT registered persons in Sri Lanka.

Below are the important practical points businesses should understand:

• The IRD has already commenced the pilot implementation of the system with selected VAT registered persons.
• The system enables real-time transmission of VAT invoice and schedule data directly from ERP/accounting systems to RAMIS through a secure WEB API connection.

Sectors Initially Covered

The following sectors/entities are already onboarded to the WEB API system:

• Garment export entities
• Tea export entities
• Tea manufacturing entities through tea brokers’ systems

In addition:

• Tea brokers’ systems have already been upgraded and connected to RAMIS.
• Invoice records and credit/debit note records relating to supplies made through the Colombo Tea Auction will be transmitted to RAMIS with effect from 01 May 2026.

Future Expansion

The IRD has stated that implementation will take place in phases:

• Phase 1 – VAT registered export-oriented enterprises
• Phase 2 – Expansion to all VAT registered persons

This indicates that eventually most VAT registered businesses may need to align their systems with this digital reporting framework.

VAT Schedules Initially Covered

The following schedules are currently expected to be transmitted automatically through the WEB API:

• Schedule 01 – Output Tax
• Schedule 04 – Credit Notes & Debit Notes
• Schedule 07 – Zero-rated Supplies

Important Operational Changes

• Manual CSV uploads may not be required once records are successfully submitted through the API.
• Purchasers will need to review and approve records appearing in RAMIS before claiming input VAT.
• Submitted records cannot simply be edited or deleted later. Corrections must be made through tax credit notes or debit notes.

What Businesses Should Do Now

1. Discuss With ERP / Software Providers

Businesses should immediately discuss:

• WEB API readiness
• Invoice format compliance
• VAT schedule generation capability
• RAMIS integration possibilities

2. Improve Invoice Accuracy

Since submitted records cannot easily be amended:

• Invoice approval procedures should be strengthened
• Staff handling invoicing should be properly trained
• Manual invoice errors should be minimized

3. Review VAT Processes

Businesses should review:

• Credit/debit note procedures
• Input VAT verification processes
• Purchase matching procedures
• Supporting document maintenance

4. Prepare for Digital Tax Administration

Sri Lanka is gradually moving towards a more automated and system-driven VAT administration environment. Businesses relying heavily on manual VAT processes may face operational challenges in the future if they do not modernize early.

5. Monitor Future IRD Updates

The IRD has also indicated plans to pre-populate import and export VAT schedules using Sri Lanka Customs data in the future.

Taxpayers are strongly encouraged to carefully refer to IRD Notice No. SEC/PN/VAT/2026-03 dated 04.05.2026 for a complete understanding of the upcoming changes.