Important Update from Inland Revenue Department
The Commissioner General of Inland Revenue has issued a new specification for Tax Invoices under the Value Added Tax Act, No. 14 of 2002. This change, published in Gazette Extraordinary No. 2463/05 dated November 17, 2025, becomes mandatory from January 1, 2026( Postponed to 1 April 2026). All VAT-registered persons must adopt the new invoice format by the effective date.
Failure to comply may result in penalties or rejection of input VAT claims. It is crucial to update your invoicing systems well in advance.
Key Changes & Requirements
Effective Date: January 1, 2026
All tax invoices issued on or after this date must follow the new format and specifications.
1. Mandatory Title & Heading
Every invoice must be prominently titled "Tax Invoice" using bold or highlighted text.
2. Supplier & Purchaser Details
- Supplier details (top left): TIN, Name, Address, Telephone Number.
- Purchaser details (top right): TIN, Name, Address, Telephone Number.
3. New Invoice Serial Number Format
Invoice serial numbers must now follow the structure: YYMMM_QQQQ_XXXXX
- YY = Last two digits of the year
- MMM = First three letters of the month (e.g., JAN, FEB)
- QQQQ = Alphanumeric code for branch/project/customer (max 4 characters)
- XXXXX = Numeric serial number (no letters or symbols)
Example: The first invoice in October 2025 for Branch 03 would be: 250CT_BR03_1
4. Additional Mandatory Fields
The invoice must now include:
- Date of invoice (MM/DD/YYYY)
- Place of supply
- Date of delivery (MM/DD/YYYY)
- Description of goods/services
- Quantity or volume
- Value of supply (excl. VAT), VAT charged, total consideration (incl. VAT), total consideration in words
- Mode of payment (Cash, Bank Transfer, Cheque, Card, Mobile Payment, etc.)
5. Record Keeping & Retention
Both supplier and purchaser must retain copies of tax invoices for a minimum of five years from the end of the taxable period. The duplicate must be marked "Duplicate".
6. One-Time Request for Tax Invoice
If a registered purchaser makes a written request for a tax invoice within 14 days of the first supply, that request remains valid for all future transactions with the same supplier – no repeated requests needed.
How TeLIAudit Can Help
Our accounting system is already fully compliant with the new VAT Tax Invoice format. We have integrated all the required fields, serial number generation, and record-keeping features to ensure your business stays ahead of the deadline.
✅ Already compliant: TeLIAudit’s invoicing system meets all the new IRD specifications. No need to worry about manual updates – we’ve got you covered.
✅ Seamless transition: Start using the new format from January 1, 2026 without any disruption to your operations.
✅ Save time & avoid penalties: Ensure every invoice meets the legal requirements automatically.
Frequently Asked Questions
From January 1, 2026. Any tax invoice issued on or after this date must comply with the new specification.
If you are using TeLIAudit, your system is already updated. For other software, you may need to customize the invoice format and serial number logic to meet the new requirements.
Non-compliant invoices may not be accepted for input VAT claims, and you could face penalties from the IRD. It’s essential to adopt the new format by the deadline.
Simply enroll in our accounting package. Our team will set you up with a fully compliant system that handles all the new requirements automatically.