As part of its move to streamline VAT collection system, the National Board of Revenue (NBR) has decided to go tough for those business establishments having an annual turnover of Taka 5.0 crore which will fail to keep their transaction information in the NBR controlled software.
“If any business establishment fails to follow this order, they will be penalized as per the Value Added Tax (VAT) law from January 1, 2019. A circular will soon be issued in this regard,” said NBR’s VAT policy member and director of VAT online project Md Rezaul Hasan, reports BSS.
He said there is an allegation against some business establishments that they collect VAT from people but do not deposit the money to the national exchequer regularly. As many establishments still maintain a manual system to keep transaction record, NBR’s audit does not get the exact information about VAT collection, he said.
“NBR has made the use of its software mandatory by establishments having annual turnover record of Taka 5.0 crore and above annually,” he said, adding that NBR will take action as per the section 37 of VAT law against the establishments which will not comply with its order.
As per the VAT law, NBR can fine the non-compliant establishments the same amount they will dodge. Moreover, the VAT officials concerned can fine such establishments minimum Tk 20,000 and maximum Tk 50,000.
“Such steps have been taken to maintain transparency in collection of VAT. If turnover records of the establishments are properly monitored, we believe our overall revenue collection will be increased significantly,” Hasan added.
He said NBR has planned to launch a field level campaign to create awareness so that the establishments can properly use the NBR software to keep transaction records.
In a recent order, the revenue authorities made the use of Electronic Fiscal Device (EFD) mandatory by 13 types of business establishments, including residential hotels, restaurants, fast food shops, sweets sellers, luxurious community centres, shopping malls, jewelry shops. These business establishments will be penalized if they do not use EFD machine.