Companies violating rule to face legal action

Companies – with annual turnovers of Tk 5 crore or above – using VAT software not approved by the National Board of Revenue (NBR), will have to get the approval within this August, as the move is mandatory for documentation and submission of VAT data.

Following this deadline, NBR officials, such as the commissioners and divisional officers, will take legal action against companies not using approved software in accordance with a general order issued by the revenue board on June 30, 2019.

This decision came at a recent NBR meeting held to discuss ways for making high-turnover companies comply with the general order, a revenue board official present at the meeting told The Business Post.

At the meeting, divisional officers mentioned that many companies are not attending presentations regarding the VAT software. NBR officials then made a decision to take legal action against companies engaged in such behavior.

Besides, the commissionerates concerned will thoroughly inspect the companies using the approved software and send the report to NBR before August 20 next.

The revenue board also decided to publish updated lists featuring the names of companies that begin using the NBR-approved VAT software. These lists will be forwarded to the respective VAT Commissionerate.

The taxpayer companies using other software have to ensure that NBR-recommended features are present in the application, and have to apply to their respective commissionerates for approval.

Companies failing to abide by these rules will face legal action under the clause 85 of Value Added Tax and Supplementary Duty Act, 2012.