Making TIN mandatory for vehicle registration in Sri Lanka

IN a significant policy shift aimed at strengthening financial accountability and improving tax compliance, Sri Lanka's Department of Motor Traffic (DMT) has made it mandatory to provide the Taxpayer Identification Number (TIN) for new vehicle registrations and ownership transfers.

- By A.G.S. Swaminathan Sharma

This requirement, effective from January 5, marks a crucial step in integrating tax administration with public service delivery, aligning Sri Lanka with global best practices in governance, transparency, and revenue monitoring.

By linking vehicle ownership with tax identification, the Government is reinforcing formal registration, responsible citizenship, and active participation in the national tax system.

What is a Taxpayer Identification Number (TIN)?

A Taxpayer Identification Number (TIN) is a unique identification number issued by the Inland Revenue Department (IRD) of Sri Lanka to individuals, businesses, and other entities for tax administration purposes.

The TIN serves as the primary reference number for:

Income tax registration and filings

Value Added Tax (VAT) and other statutory taxes

Tax assessments and audits

Asset ownership tracking

Regulatory and financial compliance

In essence, the TIN links a person or entity to Sri Lanka's national tax system and enables the IRD to monitor income, assets, and tax obligations accurately.

With the integration of TIN into public sector services such as vehicle registration, Sri Lanka is strengthening the connection between economic activity and tax compliance.

Who should obtain a TIN in Sri Lanka? (As per IRD requirements)

According to the Inland Revenue Department (IRD), TIN registration is required — or strongly encouraged — for a wide range of individuals and entities.

1. All individuals aged 18 years and above