⚖️ RAMIS Automation Denying Legitimate VAT Input Credits to Sri Lankan Businesses

• Key Issue: A discrepancy between the English and Sinhala texts of Section 22(6)(iv)(a) of the Value Added Tax (VAT) Act has been hard-coded into the Revenue Administration Management Information System (RAMIS), triggering automatic disallowance of valid input tax credits. • Legal Discrepancy: - English Text: Enforces a double-barreled deadline requiring the taxable period to end within 12 months of the invoice date AND the VAT return to be filed within the same 12 months. - Sinhala Text: Anchors eligibility strictly to the taxable period ending within 12 months of the invoice date, without enforcing a strict 12-month return filing window. - Constitutional Precedence: Under Article 23(1) of the Constitution of Sri Lanka, the Sinhala text legally prevails in cases of statutory inconsistency. • Impact on Businesses: RAMIS was built by an overseas vendor based on the English text. The automated rejection of input tax credits is causing: - Reduced refunds and inflated tax assessments. - Strained cash flow and trapped working capital. - Conversion of input credit into an unrecoverable cost, raising the overall cost of doing business. • Required Action: Administrative correction by the Department of Inland Revenue to reconfigure RAMIS rules to align with the authoritative Sinhala statutory text and prevent legal challenge.