VAT Return Filing Guide

Confirm registration status before filing starts

• VAT mandatory where taxable supplies exceed, or are likely to exceed, LKR 15 million per quarter or LKR 60 million for 12 months (unchanged by the VAT (Amendment) Act No. 14 of 2026)
• Commercial import or export of goods also triggers VAT registration (no threshold)
• Confirm the VAT registration certificate details match the invoices and customer-facing billing templates
• Standard rate: 18% unless a supply is specifically zero-rated or exempt under the current law

Run the monthly VAT timetable in the right order

1. Close the sales, purchase, debit-note, and credit-note registers for the taxable period.
2. Reconcile output VAT, input VAT, and any disallowed claims before drafting the return.
3. Arrange payment by the 20th day of the following month.
4. File the VAT return online by the last day of the month after the taxable period ends (quarterly for most registrants; monthly for eligible exporters and approved projects).

Maintain schedules that survive a desk review

• Output VAT register tied back to the sales ledger and invoice sequence
• Input VAT register with supplier details, invoice dates, and claim support
• Zero-rated or exempt supply support, including export and customs evidence where relevant
• A reconciliation from the VAT return back to the general ledger and management accounts

Use a review sheet before submission

A short written explanation for unusual movements saves time if Inland Revenue later asks why a period looks different from the prior month.

Use this guide with WinCore indirect-tax support when VAT, zero-rating, or invoice quality becomes a recurring pressure point for the finance team.

• Investigate recurring refund or credit positions before filing the next return
• Compare VAT turnover to income-tax and withholding-tax reporting to catch mismatches early
• Reject vague or incomplete invoices before input VAT is included in the return