All service providers and businesses with an annual turnover exceeding Rs. 36 million will be required to register for Value Added Tax (VAT) and the Social Security Contribution Levy (SSCL) from July 1, according to the Inland Revenue Department.
Speaking at a special awareness programme for business owners and service providers in the Nuwara Eliya District, Senior Deputy Commissioner of Inland Revenue E.D. Karunaratne stated that the taxable turnover threshold has been reduced from Rs. 60 million per year to Rs. 36 million per year.
He explained that the revised threshold is equivalent to a daily income of approximately Rs. 100,000, making VAT and SSCL registration mandatory for businesses engaged in services, manufacturing, wholesale trade, and retail trade that exceed this level of turnover.
Karunaratne urged eligible businesses to complete their registrations without delay and noted that the process can be carried out online through the official Inland Revenue Department website or by visiting any Inland Revenue office across the country.
He added that the Department has introduced the necessary facilities and support mechanisms to assist taxpayers with the registration process.
The Senior Deputy Commissioner emphasized that the government has revised the tax thresholds as part of broader efforts to strengthen state revenue collection and improve the country’s fiscal position.
He further pointed out that businesses collect these taxes from consumers and remit them to the government, making compliance with registration and tax obligations a legal responsibility of the business community.
The Inland Revenue Department has encouraged all affected businesses to familiarize themselves with the new requirements and ensure timely registration ahead of the July 1 implementation date.
