Google, Facebook, Amazon, Microsoft pay Tk 25cr VAT

Four big technology companies – Google, Facebook, Amazon, and Microsoft – have paid Tk 25 crore in VAT to the government exchequer.

According to the VAT returns, Facebook alone paid Tk 12 crore for the June-September period.

The other three tech giants paid Tk 13 crore VAT from May to September. Microsoft has been paying VAT since August.

In all, the amount of VAT deposited by four tech giants has been Tk 25 crore in the last five months.

Microsoft registered for VAT on July 1. Earlier, as registered non-resident organisations doing business in Bangladesh, Google obtained the Business Identification Number on May 23, Amazon on May 26, and Facebook on June 13 to get VAT-related services directly, including VAT payments and VAT return submissions.

Talking to officials who have been working closely with Facebook, Google, Microsoft and Amazon in the country, it was learned that these companies paid VAT only based on account sales at the individual level.

Earlier in September, the four big technology companies paid Tk 7.84 crore in VAT. Of them, Microsoft paid VAT for the first time. Google, Facebook and Amazon paid Tk 4.61 crore for August, while Microsoft paid Tk 3.23 crore for June-August.

Hoping that the amount of VAT will increase from these companies, Dhaka South Commissioner of the Customs, Excise and VAT Commissionerate SM Humayun Kabir said, “We are happy with the VAT we have received so far. However, in such a short time, it is not possible to assess whether they are paying the right amount of VAT.”

The Value Added Tax and Supplementary Duty Act 2012 says companies like Facebook, YouTube, and Google have to register for VAT and set up offices in Bangladesh or hire local VAT agents. 

The revenue board decided to bring such companies under separate VAT registration numbers early last year.