NBR launches online VAT return system

The National Board of Revenue (NBR) launched Monday online the VAT return submission system help businesses complete the process without harassment.

With the newly-launched system, companies will now be able to submit their VAT returns from anywhere without visiting offices.

Initially, the large taxpayers will be able to avail the online submission facility, while all businesses will come under the system by August 14.

Chairman of the National Board of Revenue (NBR) Md Mosharraf Hossain Bhuiyan inaugurated the online VAT return submission process in the city's Institute of Diploma Engineers Bangladesh.

Four large taxpaying businesses-Bank Asia, Banglalink, RAK Ceramics and Orion Infusions-submitted online VAT returns in the programme.

Businesses will have to furnish its information, return submission data, supply, purchase, increasing and decreasing adjustment, net tax calculation, account code wise payment schedule (treasury deposit), closing balance and declaration in the online return.

Speaking at the programme, the NBR chairman said many businesses avoid submission of VAT returns in the country due to its manual system.

"I hope all will file VAT return online from now," he said.

There are some 150,000 VAT registered businesses who obtained e-BIN.

The NBR chairman warned of taking stern action against the businesses who obtained VAT registration giving false information.

"We have noticed that some businesses have furnished false information while obtaining Business Identification Number (BIN) as it is mandatory for availing some services, including export-import," he said.

He said the NBR will provide Electronic Fiscal Device (EFD) to the businesses soon, which will have interconnectivity with the VAT authority.

Senior vice president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Sheikh Fazle Fahim said the informal sector of the economy should be brought into the formal channel through automation.

"The cost of doing business will decrease if people involved in the value chain and other stakeholders become compliant," he said.

Golam Mainuddin, vice president of the Metropolitan Chamber of Commerce and Industry (MCCI), said VAT officials should consider the mistakes mildly during the online return submission by businesses.

He said businesses will benefit from the online system upgrades, compared with the existing paper-based system.

VAT Online project director Syed Mushfiquer Rahman said the existing VAT law has turned into garbage and there is no scope for incorporating digitsation provision in it.

"We have to implement the new VAT law by replacing the existing one," he said.

It is estimated that the enforcement of the new VAT law could bring additional revenue in the range of Tk 250 billion-Tk 300 billion.

The new online VAT return form has the option to submit returns under both the existing and new law, he said.

The NBR chairman said the long-awaited law will be implemented from July 1 and have multiple rates of VAT.

There will be rebate system for those who will pay VAT at 15 per cent rate.

VAT policy member of NBR Rezaul Hassan delivered vote of thanks in the programme.

He said the NBR will provide EFD to the businesses having annual turnover up to Tk 50 million.