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Four big technology companies – Google, Facebook, Amazon, and Microsoft – have paid Tk 7.84 crore in VAT to the government exchequer. Of them, Microsoft has 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 the June-August period, said Dhaka South Commissioner of the Customs, Excise and VAT Commissionerate SM Humayun Kabir.
The Commissionerate said search engine giant Google paid Tk 1.07 crore, and Amazon Web Services Tk 34.07 lakh in August.
Three Facebook companies showed Tk 2.56 crore in their VAT returns, but the money has not yet reached the VAT authorities.
Among the three companies, Facebook Ireland paid Tk 2.55 crore, Facebook Payments International Tk 25,709, and Facebook Technologies Ireland Tk 16,065.
Besides, Microsoft Regional Sales’ VAT return has not yet reached the Dhaka south commissionerate.
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.
Local VAT agents are currently responsible for paying VAT of foreign companies under the VAT law.
These companies have been facing various problems since 2019 to get VAT registrations and submit VAT returns. That is why they demanded they get these services directly as per the VAT law.
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.
