The Commissioner General of Inland Revenue has officially announced a postponement of the mandatory implementation of the revised Value Added Tax (VAT) invoice format, pushing the effective date from 1 July 2026 to 1 October 2026, according to a newly issued government gazette.

The delay was formalised through Gazette Extraordinary No. 2500/106 issued on 6 August 2026 by Commissioner General Rukdevi Perpetua Himali Fernando, exercising powers vested under Section 20 of the Value Added Tax Act, No. 14 of 2002. This new directive amends the previous notice published in March 2026 regarding the specific format and specifications required for tax invoices issued by registered persons.

According to the Department of Inland Revenue, all other matters, requirements, and specifications prescribed in the original March Gazette remain unchanged. The extension is intended to provide VAT-registered persons who have not yet transitioned to the revised format additional time to comply with the new regulatory requirements.

The revised invoice format was originally introduced on 27 March with the aim of streamlining the digital tax collection process and enhancing transparency within the tax system. The Inland Revenue Department stated that businesses had requested additional time to update their accounting and billing software systems to comply with the new requirements.

Considering these requests, businesses have been instructed to ensure that their accounting and invoicing systems are updated in accordance with the specified requirements before the new format becomes mandatory on 1 October 2026.

The department further stated that the new system aims to prevent the use of fraudulent invoices, enable timely monitoring of transactions, and minimise tax leakage.