In short
- VAT-registered businesses issue invoices titled “Tax Invoice”, with both parties’ details and VAT shown separately.
- VAT is 18% for most supplies. SSCL at 2.5% is a separate levy and goes on its own line.
- Keep invoice numbers in one unbroken series, and never edit an issued Tax Invoice: issue a credit note.
If your business is registered for VAT in Sri Lanka, the invoices you issue are more than a request for payment: they’re the document your customer uses to claim back the VAT, and the one the Inland Revenue Department (IRD) checks against your return. Getting the format right once saves a lot of correcting later.
What goes on a Tax Invoice
- The words “Tax Invoice” at the top.
- Your business name, address, TIN and VAT registration number.
- Your customer’s name and address, and their VAT number if they’re registered.
- The date of the invoice and the date of supply, and a serial number from one unbroken series.
- A description of what you supplied, with quantity and value.
- The VAT rate and the VAT amount, shown separately, and the total including VAT.
A revised format. The IRD revised the required Tax Invoice format from 1 July 2026, ahead of e-invoicing through RAMIS. Check the current field list with your tax practitioner or on ird.gov.lk before you design your own template.
VAT and SSCL
VAT is charged at 18% on most supplies, with some zero-rated and exempt. The Social Security Contribution Levy (SSCL) is a separate levy of 2.5% on turnover. Unlike VAT, there’s no credit for SSCL you pay on your own costs, so it needs its own line and its own summary.
- Design services
- Rs 250,000.00
- SSCL 2.5%
- Rs 6,250.00
- VAT 18% (on Rs 256,250)
- Rs 46,125.00
- Total
- Rs 302,375.00
Layout only. Whether SSCL sits inside the VAT base like this is one of the details to confirm with your practitioner or the IRD before you rely on it.
When you have to register
You must register for VAT once your taxable supplies pass the registration threshold. Published figures for the current threshold differ, so confirm the figure that applies to you with your tax practitioner or the IRD. Below the threshold you issue ordinary invoices, without VAT.
Mistakes that cause trouble
- Gaps or repeats in invoice numbers. Use one series and never reuse a number, even for a cancelled invoice.
- Editing an invoice after it’s issued. Issue a credit note for the difference instead, and a new invoice if needed.
- Counting VAT and SSCL as income. They pass through your account on their way to the IRD.
- Missing your customer’s VAT number when they’re registered. Without it they may not be able to claim the VAT back.
A Tax Invoice is a tax document first and a bill second. Number it, date it, and don’t change it once it’s out.
Rates, thresholds and dates in this guide are as of 14 October 2026. They’re illustrative: rules change, so check with your tax practitioner before a big decision. It’s general information, not tax or legal advice.
Rates shown are illustrative and are checked against ird.gov.lk before launch.