VAT offices to remain open April 12-15

A NBR press release made the decision public yesterday, hours after the government extended general holiday for the third time to slowdown the spread of Covid-19.

The NBR directive will prompt over 370 VAT offices to remain open across the country.

Meanwhile, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) urged NBR to extend the deadline for VAT returns submission without penalty on Thursday.

The apex trade body said it would not be possible for many business entities to furnish VAT return on due time because of coronavirus crisis.

Sheikh Fazle Fahim, president of FBCCI, said, "We requested extension of deadline without penalty and believe that our request will be accepted considering the prevailing realities."

Contacted, NBR Member VAT Implementation Jamal Hossain said banks, ports and import-export related offices remained open. Plus, many businesses wanted to submit their VAT returns.

It is necessary to keep the VAT offices open as a fine of Tk 10,000 has to be paid by businesses in case of failure to furnish returns within the first 15 days of the month, he said.

If VAT offices are not open, businesses will complain that NBR kept the offices closed and blame us for the fine, he added.

Kazi Mostafizur Rahman, project director of VAT Online Project (VOP), said the NBR offered scope for businesses to submit online VAT returns from October and the number of submission from 150,000 VAT registered entities had been rising since January.

In March, 34,400 VAT returns were submitted online, going up by 56 percent from 22,000 in February. The number of online submission would have been 50,000 had situation been normal, he said.

As per the rules, businesses have to submit details of transactions of previous month and deposit VAT paid by ultimate consumers to the state coffer within 15 days of the next month.

Businesses have to pay Tk 10,000 as penalty if failed to submit VAT returns within the scheduled time.

Firms can also seek time for delayed furnishing of returns but they have to pay 2 percent simple interest monthly for delayed submission, according to the rules.