NBR simplifies VAT return submission process

The National Board of Revenue (NBR has simplified the process of submitting Value Added Tax (VAT) returns by introducing multiple ways of placing relevant documents to reduce the hassles allegedly being faced by the businesses.
The returns through guaranteed express post (GEP) and courier services will be allowed, according to an order issued by the VAT wing Tuesday.
Also, the returns having attachments of scanned documents below five pages could be sent through e-mail.
Currently, the VAT wing only allows businesses to submit VAT returns in its designated desks in the VAT circle offices of the respective zones.
There are widespread allegations that the businesses have to spend extra money while visiting the VAT offices for submitting returns every month.
Currently, there are some 8,64,000 VAT-registered businesses or Business Identification Number (BIN) holders, but only 32,000 of them submit returns every month.
As the VAT-payers are required to directly submit the returns in the circle offices and obtain acknowledgement seal and sign in their respective copies, they feel discouraged to file the VAT returns, officials said.
The number of return submission is not increasing due to such constrains, they said.
A VAT return reflects the overall activity of an organisation. The newly issued order of the NBR would help increase the number of returns at an expected level, officials said.
The NBR has sent the order with seven-point instructions to its all field-level VAT and customs offices across the country.
However, the businesses will have to submit the VAT returns at least before three working days of the deadline in case of sending those through post or courier services.
According to the order, the NBR also instructed the VAT officials to set up a dedicated desk for first fifteen days of a month (20 days in case of insurance companies) in all circle offices for receiving the VAT returns.
The VAT commissioner of the respective circle offices will issue an order regarding the process of acceptance of returns, issuance of acknowledgement receipts, submitting the returns to the concerned VAT officials, through discussion with the other authorised officials.
VAT officials will have to issue acknowledgement receipts instantly without scrutiny to the VAT payers who will directly submit the returns in the concerned desk.
However, they may mention the nature and number of documents attached with the returns in the acknowledgement slip.
In case of submitting the returns through GEP or courier services, the VAT payers should clearly mention 'return' in the slip.
After receiving the mailed VAT returns, concerned VAT officials will have to reply the VAT payers within next working day by sending them acknowledgement receipt through GEP post, courier services, e-mail or by hand.
However, VAT payers have to furnish their respective e-mail address in the VAT returns.
VAT officials have to keep the soft and printed copies of the VAT returns that would come through e-mail.
For sending the main copy of treasury chalan with the VAT returns, the VAT payers will have to send the cross checked copies of the chalan collecting information from the website of the office of the Controller General of Accounts (CGA), Bangladesh (www.cga.gov.bd).
VAT officials will conduct intensive scrutiny of the returns if they found, in their preliminary examination of the returns, any 'material discrepancy' in submitted documents and data as per VAT law-1991.
However, they have to upload the VAT returns, without attachments, in the integrated VAT administration (IVAS) in PDF format after proceeding for scrutiny under the law.
Talking to the FE, a senior VAT official said due to delay in introducing online submission of VAT return system, the VAT wing has issued the order to ease the manual process.
"We have broadened the scope of VAT return submission to encourage the businesses to submit returns," he added.
He said the wider scope of return submission under manual process would be continued after introduction of online VAT returns.
As per VAT law-1991, assistant revenue officer of the concerned VAT circle is authorised to receive the VAT returns.
Talking to the FE, former adviser of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Manzur Ahmed hailed the NBR's move and termed it a 'bold step.'
"Currently, businesses have to spend money even for submitting the VAT returns and get acknowledgement receipts," said Manzur, who is now an adviser of Bangladesh Chamber of Industries (BCI).
He said simplification of the VAT return submission process would reduce the unusual harassment of the businesses.
He, however, said the scope of submitting VAT returns through e-mail should be opened for all removing the cap for only below five pages attachments.
"Businesses that are involved in multiple heads of consumers' items including super shop like Agora would not be able to submit VAT returns through e-mail due to keeping the scope limited," he added.

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