The National Board of Revenue is going to issue electronic business identification number from April to facilitate online submission of value-added tax returns by businesses under the new VAT and Supplementary Duty Act-2012.
The new VAT and SD act is scheduled to come into effect from July 1, replacing the existing VAT law 1991. Under the new law, businesses will have to complete all VAT payment-related activities online.
NBR officials said that all the VAT-payers would have to replace their existing 11-digit BINs or VAT registration numbers with nine-digit ones.
Under the new law, all types of businesses having annual turnover of above Tk 80 lakh will require obtaining BINs for VAT payment purpose.
BIN holders have to submit VAT returns every month.
A senior official of the VAT wing of the NBR told New Age that they would complete required procedures and provide e-BINs to compliant businesses who submitted VAT returns in at least two months in last 12 months.
‘The other existing BIN holders will have to obtain the new BIN by visiting the NBR web site dedicated for VAT,’ he said adding that the VAT Online Project was preparing the web site to facilitate obtaining e-BINs, submitting VAT returns and paying VAT online.
Taxpayers will be able to create their own user identification number and password on the NBR web site for online registration. They will also be able to submit online VAT returns using the ID and password, he said.
According to the NBR data, there are currently 8.40 lakh BIN holders
in the country.
Of them, only around 32,000 BIN holders submit VAT returns though submission of returns is mandatory for all BIN holders.
Under the law, VAT officials can impose Tk 20,000 as penalty for not submitting VAT returns. In addition, monthly 2 per cent interest of unpaid VAT can also be imposed.
According to the NBR officials, once the new VAT act comes into force, the rate of submission would increase as it would be easy to trace the defaulted VAT payers using online data.
Currently, VAT officials in many cases cannot trace the defaulted VAT payers, they said.
Many BIN holders even did not start their businesses, they said.
They said that field offices had already started updating the data of compliant BIN holders and the data would be transferred to the NBR web site from April for generating e-BINs for them.
Businesses have also been requested to obtain e-BINs.
From August, BIN holders will have to submit VAT returns online if the new VAT act is finally implemented, the officials added.
source : the new age