Revised VAT Invoice Format to Become Mandatory from October 1

The Inland Revenue Department (IRD) has announced that the revised Value Added Tax (VAT) invoice format will become mandatory for businesses from October 1, 2026.

The department has also issued an Extraordinary Gazette notification outlining the implementation of the revised invoice format.

The new format was originally scheduled to come into effect on July 1, 2026. However, the implementation was postponed to allow businesses and taxpayers additional time to update their accounting and billing systems.

The revised VAT invoice format was introduced on March 27 as part of efforts to streamline digital tax collection and improve transparency within the tax system.

According to the IRD, businesses requested additional time to modify their accounting and invoicing software to meet the new requirements. In response, the department granted a grace period and instructed businesses to ensure that their systems are fully updated before the new format becomes mandatory.

The IRD said the revised system is expected to help prevent the use of fraudulent invoices, facilitate timely monitoring of transactions and reduce tax leakage.

Businesses are therefore advised to complete the necessary system upgrades and ensure compliance before October 1, 2026.