Businesses will be exempt from depositing advance amounts of VAT for goods and services from July 01 next.
The exemption will come into effect following enforcement of the new VAT law.
Officials said the revenue board will abolish the provision of 'account current register' in the new VAT and Supplementary Duty Act 2012, up for taking effect on the first day of the next fiscal year.
All businesses will be required to pay VAT at the time of submission of VAT returns every month instead of advance payment of the tax.
In the run-up to implementation of the new provision, the Value-Added Tax (VAT) wing of the National Board of Revenue (NBR) has already instructed all its field-level VAT offices to adjust the additional amount of VAT under the 'account current register' by June 30, 2017.
The wing also asked the VAT offices to assess actual payable VAT of all of the registered VAT-payers in respective commissionerates in order to collect due amount of revenue.
The VAT department also requested all the VAT commissioners not to request the payers to pay any additional amount of VAT in addition to what is payable.
Meanwhile, the NBR sent the letter to the VAT offices across the country for taking necessary preparation to adopt the new taxing law.
Official sources said VAT officers usually request large businesses to pay an additional amount of VAT in the 'account current register' at the end of every financial year to meet their annual target, in case of any shortfall.
"This year, the VAT officers cannot enjoy the facility as new law scrapped the provision of advance payment of VAT. The additional amount of VAT cannot be adjusted with the first few months of next year," said one VAT official.
He said there might be concern among the VAT officials over meeting their targets without the provision in question but actually the provision has been incorporated into the new law for facilitating businesses.
Under the existing VAT law of 1991, in case of services who do not take input-tax credit VAT is to be paid before submission of returns. But, in case of goods and services, those who take input-tax credit have to deposit VAT with the government treasury in advance and keep balance in the account current register from where VAT is deducted at the time of supply.
doulot_akter@yahoo.com
