NBR to introduce e-filing of returns and e-payment for VAT

Under the VAT Act 2012, each and every business must submit the month’s VAT returns within the next 15 days, and failing to do so would result in fines or penalties for the businesses.

During this covid-19 pandemic, it has become difficult for the companies to comply with the strict law regarding the submission of VAT returns. To ease the difficulties of filing VAT returns for businesses, the National Board of Revenue (NBR) introduced the e-filing of VAT returns. In addition to filing VAT returns electronically, businesses will now be able to clear payments without visiting the VAT office as the e-payment system has been finalized by the National Board of Revenue (NBR). Initially, the payment solution will be issued from home by Hong Kong and Shanghai Banking Corporation Limited, Bangladesh (HSBC), Midland Bank Ltd, and Prime Bank.

NBR, in collaboration with the World Bank, is introducing the online VAT project that aims to help enforce the VAT legislation. The benefits of the new VAT law are still unavailable to the level expected as the VAT process is yet to be fully automated.

The collection of VAT refunds is still a manual process and it has been criticized with countless harassment allegations.

Hence, NBR is also continuing to work on the automation of VAT refunds. Software and related technology for the refund process are being developed which are among the main factors in VAT automation.