Businesses are facing difficulties to submit their VAT returns online following repeated complexities and cumbersome procedures.
A number of large businesses have already lodged complaints with the VAT authority, as they failed to submit their returns online.
However, the National Board of Revenue (NBR) is charging Tk 10,000 per month as penalty for not submitting the VAT returns by the 15th of each month.
The Large Taxpayers Unit (LTU) VAT in a recent letter to the NBR sought attention of the high-ups to the problems faced by its VAT-payers regarding submission of online returns.
RAK Ceramics Bangladesh Limited, Dhaka Bank Limited, China-Bangla Ceramics Ltd, National Bank Ltd, Global Heavy Chemical Limited, Robin Printing Limited, and Bangladesh Edible Oil Limited complained that the online VAT return submission form is not available due to sign-up and authorised person-related complexities, the LTU letter mentioned.
Besides, Southeast Bank Ltd, Islami Bank Bangladesh Ltd, Sonargoan Hotel, Radisson Blue, Holcim Cement, Premier Cement, Bengal Glass, Reliance Insurance, and Kohinoor Chemicals alleged that the server was too slow to show the prescribed forms (VAT-9.1) on the site.
Modina Cement Ltd complained of insufficient space, less than two megabytes, to attach files and other necessary documents on the server.
Unilever Bangladesh Limited said it is facing a problem to fill up the column of supplementary duty (SD) in the form. The SD is being slapped in different phases in the new law. It is also facing difficulties to upload data of purchase and sale register.
Rupali Insurance Limited said it failed to submit online returns due to the mandatory provision of uploading VAT 6.1 and VAT 6.2.1 forms in the VAT online system. The company does not maintain such a register.
Star Particle Board Limited said it cannot attach documents to the VAT 6.1 and 6.2 register as well as rebate.
Akij Particle Board Limited alleged that it could not submit online returns due to mismatch between HS code and VAT-related information on produced products and local inputs.
Linde Bangladesh Limited said MS wire rod (HS code 7213.91.10) is exempted from payment of SD, and it enjoys concessional rates on import under SAFTA agreement. But SD for the product is mentioned 45 per cent and VAT 15 per cent in the online form.
Other complaints about online VAT return submission include HS code-related complexities on manufactured products, raw materials and packaging products.
The businesses also complained that they are not getting support from the helpline number on online VAT return submission.
Many of the businesses also lodged complaints of automatic imposition of penalty every month for not submitting VAT returns.
Talking to the FE, Dr Sajjad Zohir, Executive Director of Economic Research Group (ERG), said such penalty should not be imposed for every month, as deposition of VAT needs time after deduction at source.
The penalty could be imposed for overdue of at least two or three months.
He suggested correcting online VAT structure to facilitate timely submission of returns.
"Design with timely submission (15th of the following month) was contingent upon proper functioning of the online system," he added.
Only 9,610 or 7.40 per cent of the total 130,000 business identification number (BIN)-holders submitted online VAT returns in December.
Talking to the FE recently, the NBR VOP Project Director Syed Mushfequr Rahman said the problems with submission of online VAT returns may occur due to mismatch in mobile phone number and NID. Also, the system does not accept any incomplete return. He further said lack of willingness of the businesses to submit returns online is also responsible for the dismal scenario.
"Some businesses have already submitted their returns online. We are ready to support others to submit their returns," he added.
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