VAT collected from buyers should be paid04 November 2022
Around 22 per cent of business enterprises do not submit VAT returns though the number of total enterprises under VAT registration is 372,934 till August this year. A total of 371,934 business enterprises have come under the VAT registration, and of those 290,899 enterprises regularly submit VAT returns, denoting 21.79 per cent do not submit VAT returns.
NBR has been expecting that the submission of online VAT returns will be 85 per cent by the end of the year. The online platform is being strengthened and the automation will reduce the complexity of such matters. NBR sources said the VAT-registered enterprises in FY2020-21 was two lakh and 91 thousand. After the enactment of the new VAT Act in July 2019, the Electronic Business Identification Number (e-BIN) was made compulsory. None can submit VAT returns without e-BIN.
Currently, there are 12 VAT commissionerate offices across the country. Of them, five are located in the capital. In order to increase the VAT net, all the eligible enterprises are being brought under VAT net compulsorily. Earlier the business entities were given VAT registration through the traditional system and it had an 11 digit number on the registration paper. As per the new VAT regulation, no VAT will be realised from the entity if the annual transaction is below Tk 50 lakh. When the transaction is above Tk 50 lakh and below three crore taka, the turnover VAT rate will be four percent of the total transaction. The regular VAT rate will be applicable for others. Only the enterprises which provide turnover VAT and regular VAT will have to take e-BIN.
The VAT return submission has been made easy and now we ask the NBR to introduce VAT literacy and easy payment methods. The people should be able to trust public servants. The government helped the looters of public money.