VAT Registration: When and How to Register Your Business

Why VAT registration timing matters

Crossing the LKR 80 million rolling threshold without a filed VAT application triggers backdated liabilities and penalties. CFOs and founders need a forward view of taxable supplies, a document room ready for Inland Revenue visits, and a plan to push VAT compliance into everyday billing routines.

Common friction points we hear from leadership teams

• Sales teams commit to VAT-inclusive pricing before finance confirms the statutory status.
• RAMIS portal access gets delayed because supporting documents are scattered across departments.
• Global SaaS or digital service providers miss electronic services rules and undercharge VAT.

12-week roadmap to achieve VAT readiness

1. Weeks 1–2 | Diagnostic: run revenue trend analysis, identify exempt supplies, and map customer locations.
2. Weeks 3–4 | Document control: compile incorporation, bank, lease, and utility proofs; store them in a shared vault for RAMIS officers.
3. Weeks 5–6 | Application: submit the VAT application, prepare for a site visit, and generate user credentials in RAMIS.
4. Weeks 7–12 | Billing integration: update invoice templates, train finance & sales, configure accounting systems for VAT output/input ledgers.

Controls to prevent threshold surprises

Build a VAT tracker inside your ERP or adapt the revenue dashboard in our monthly bookkeeping template. Trigger automated alerts when taxable supplies hit 60%, 75%, and 90% of the threshold so leadership has time to react.

Financial modelling considerations

Adjust revenue forecasts to show VAT-inclusive versus exclusive pricing, margin impact, and cash flow timing differences. Present the model to leadership alongside pricing guidelines so sales understands how VAT alters discounting rules and collection targets.

Keep procurement informed as well. Input tax claims require supplier invoices with compliant language, so coach vendors on formatting and request reissued invoices before period close if details are missing.

Tap into WinCore's indirect tax desk

Our indirect tax specialists review contracts, subscription agreements, and cross-border service flows to confirm place-of-supply rules. We can also deploy a VAT filing playbook so your team submits the first return flawlessly within 20 days of month end.

Continue your reading with these guides:

• Income tax changes 2024/25 – align direct and indirect tax positions.
• VAT filing calendar template – keep statutory dates visible to every stakeholder.

Once registration is complete, run a 90-day checkpoint to test RAMIS filing accuracy, reconcile VAT control accounts, and confirm customer communications reflect the new tax treatment. Document lessons learned in your compliance playbook so renewals and new product launches stay on track.