The National Board of Revenue (NBR) has launched a special initiative to simplify the filing of VAT returns by allowing taxpayers to upload their previously submitted paper-based returns to the e-VAT system on their own.
Under the initiative, all previously submitted paper-based returns can be stored in the system without paying any penalty or interest until March 31, 2026.
Once the process is completed, taxpayers will be able to submit all VAT returns online in future without interruption.
To this effect, the revenue authorities issued a circular on Monday detailing the operational procedures of the newly introduced sub-module designed for this purpose.
In a press release, the NBR said taxpayers would be able to upload their earlier submitted hard copies of returns to the e-VAT system by following certain guidelines, according to the circular.
Under the existing mechanism, paper-based VAT returns submitted by taxpayers were to enter into the e-VAT system by officials at the Central Processing Centres (CPCs) of respective VAT commissionerates.
However, the process often resulted in data-entry errors, delays and difficulties in fixing responsibility, particularly due to the large volume of returns.
As a result, many returns were not uploaded to the system within the stipulated time, leading to the automatic imposition of interest and penalties.
In several cases, affected taxpayers were later barred from submitting online returns unless the penalties were cleared.
With the introduction of the new sub-module, taxpayers who submitted hard copies of VAT returns within the timeframe, as prescribed under Section 64 of the VAT and Supplementary Duty Act, 2012, will be able to upload those returns to the e-VAT system without any interest or penalty, according to the NBR.
The revenue board also said taxpayers would receive notifications via email and mobile phone containing a direct link to the e-VAT system, through which they can have access to the 'Hard Copy Return Entry' sub-module.
The NBR authorities expect that the initiative would enhance transparency and accountability in VAT administration and accelerate the full digitalisation of the country's tax management system.
They also urged taxpayers to extend their full cooperation to ensure the successful implementation of the initiative.
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