Bangladesh Bank has directed all the scheduled banks of the country to ensure the collection of 15 percent Value Added Tax (VAT) on payment to social media service providers, including Facebook, Youtube and Google, for their services.
Referring to a National Board of Revenue (NBR) letter to the Bangladesh Bank, dated January 22, the central bank on Monday asked the banks through a circular issued by the Banking Regulation and Policy Department (BRPD) department to properly follow the instructions outlined in the letter.
In its letter, the NBR to the Bangladesh Bank said some 15 percent VAT is collectable from the service providers, including Facebook, Youtube and other advertisement publishers, being operated from outside the country as per the VAT Law 1991.
"The payment against the services is made through the Bangladesh Bank and other banks. The NBR is informed that some banks are not collecting these VAT," says the NBR letter.
It also mentioned that it has to be made sure that 15 percent VAT is being deducted while making such payments through credit cards like Master Card or Visa Card, or TT or any mode of payment.