# VAT Registration Threshold Checker for Sri Lanka: Annual and Quarterly Turnover

Page: https://hirantha.me/tools/vat-registration-threshold-sri-lanka
Part of: Hirantha Sandaruwan Lakshan free tools (https://hirantha.me/tools)
Updated: 2026-10-27

Enter your taxable turnover for 12 months or four quarters and see if it is over the Sri Lanka VAT registration threshold, with headroom and a running total.

This is a free tool that runs in the browser: open the page to use it. File tools process files on the visitor's own device; files are never uploaded or stored. No account, sign-up, payment or watermark.

Enter your taxable turnover for the last 12 months, or for each of four quarters, and the tool shows whether it is over the VAT registration threshold, how much room is left and the running total by quarter. The defaults are Rs. 60 million for 12 months and Rs. 15 million for a quarter, the figures the Inland Revenue Department lists. A cut to Rs. 36 million was proposed in Budget 2026 but the Government dropped it in June 2026. Both thresholds are boxes you can edit.

A person who supplies goods or services in Sri Lanka has to register for VAT when the value of taxable supplies is more than Rs. 15 million in a quarter or more than Rs. 60 million in 12 months. The tool tests both. The test is strictly more than: turnover equal to the threshold is not over it. The Inland Revenue notice also says a person must register when supplies are likely to exceed a threshold, so a forecast over the limit can matter before the figures are in; this tool only tests the figures you type.

In the 12 month mode you type one total and the tool compares it with the annual threshold. It shows the headroom (threshold minus turnover) and the share of the threshold used. It cannot test the quarterly threshold from one total, and it says so.

In the four quarter mode you type the taxable turnover of each quarter, oldest first. The tool adds a running total, marks any quarter that is more than the quarterly threshold, and marks the point where the running total passes the annual threshold. A quarter left empty counts as zero. Either test being over means registration looks required.

Only taxable turnover belongs in the boxes. Exempt supplies are not counted, and deciding what is taxable, exempt or zero rated is outside this tool. It also leaves out voluntary registration, special cases for new businesses and the Social Security Contribution Levy. Treat the answer as a check, and confirm with the Inland Revenue Department. Nothing you type leaves your browser.

Thresholds used by default:
| Period | Default threshold | Test |
| --- | --- | --- |
| One quarter | Rs. 15,000,000 | Taxable supplies more than the amount |
| 12 months | Rs. 60,000,000 | Taxable supplies more than the amount |
| Proposed in Budget 2026, not implemented | Rs. 36,000,000 a year | Dropped in June 2026 |

Q: What is the VAT registration threshold in Sri Lanka?
A: The Inland Revenue Department lists Rs. 15 million for a quarter and Rs. 60 million for a 12 month period for taxable supplies of goods and services, in effect from 1 January 2024. Confirm the current figures with the Department before you rely on them.

Q: Did the threshold fall to Rs. 36 million?
A: It was proposed in Budget 2026, but the Government told Parliament on 23 June 2026 that it would not go ahead, and an Inland Revenue notice says the existing thresholds stay. The tool defaults to Rs. 60 million for that reason. You can type 36000000 to see what a lower threshold would mean.

Q: Do I register if I am exactly at the threshold?
A: The Inland Revenue Department wording is that supplies must exceed the amount. So Rs. 60,000,000 exactly is not over, and Rs. 60,000,001 is. The tool uses the same strict test.

Q: Which turnover should I enter?
A: Enter the value of taxable supplies of goods and services for the period. Do not include exempt supplies. If you are unsure what counts as taxable, ask the Inland Revenue Department or a tax adviser.

Q: Why does the tool check quarters as well as the year?
A: Registration is required when a single quarter is more than Rs. 15 million, even if the 12 month total is under Rs. 60 million. Four quarters of Rs. 14 million total Rs. 56 million and none is over, but one quarter of Rs. 16 million is enough.

Q: Does this tool cover the Social Security Contribution Levy?
A: No. It only tests the VAT thresholds. The levy has its own rules, so check them with the Inland Revenue Department.

Q: Does this tool register me for VAT?
A: No. It is a check on figures you type. Registration is done with the Inland Revenue Department, and the tool sends nothing anywhere.

Sources: Inland Revenue Department, Value Added Tax (VAT): Rs. 15 million a quarter and Rs. 60 million for 12 months, checked 2026-10-27 (https://www.ird.gov.lk/en/type%20of%20taxes/sitepages/value%20added%20tax%20(vat).aspx); Inland Revenue Department public notice: proposed VAT threshold reduction abandoned, existing thresholds unchanged (notice SEC/PN/VAT/2026-03 of 3 July 2026), checked 2026-10-27 (https://www.ird.gov.lk/en/Lists/Latest%20News%20%20Notices/Attachments/799/PN_VAT_2026-03_New_E.pdf); Daily FT, Govt. retreats on VAT threshold cut (24 June 2026), checked 2026-10-27 (https://www.ft.lk/top-story/Govt--retreats-on-VAT-threshold-cut/26-793693)

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