Discontinuation of SVAT system: What businesses need to know

THE Simplified VAT (SVAT) system is set to be discontinued effective 1 October. This decision will significantly impact many businesses, particularly exporters who rely on this system for upfront VAT refunds.

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EY Sri Lanka and Maldives Partner — Head of Tax Sulaiman Nishtar commented, “The discontinuation of the SVAT system by the Inland Revenue Department represents a significant change that businesses will need to prepare for. This transition may lead to some uncertainty, and it is important for businesses to seek the necessary information and proper guidance during this period.”

EY Sri Lanka Principal — Tax Shakthivel Velauthapillai said, “Businesses need to be informed about the implications of this discontinuation. It is essential for them to understand how this change will affect their operations and compliance requirements.”

Key action points for businesses