NBR moves to bring all VAT return records under e-VAT system

The National Board of Revenue (NBR) has taken a special initiative to bring all VAT return records under the e-VAT system, with the aim of making VAT return submission easier for taxpayers.

Under the new arrangement, taxpayers will be able to enter their previously submitted hard-copy VAT returns into the e-VAT system on their own, without incurring any fines or interest, the NBR said.

In a circular issued on Monday, the NBR outlined the operational procedures of a newly introduced sub-module. According to the circular, taxpayers can independently upload their earlier paper-based VAT returns into the e-VAT system, according to an official press release.

The NBR explained that under the existing system, paper VAT returns submitted by taxpayers were entered into the e-VAT system through the Central Processing Centre (CPC) of the respective VAT commissionerates.

VAT officials were responsible for inputting the data, but errors during the process often led to complications in determining responsibility. Moreover, the large volume of returns meant that data entry took a long time.

As a result, many returns were not entered into the system on time, leading to the automatic imposition of interest and penalties on taxpayers. In such cases, taxpayers were unable to submit future online returns unless the imposed penalties were paid first.

With the introduction of the new sub-module, taxpayers who submitted hard-copy VAT returns within the time stipulated under Section 64 of the Value Added Tax and Supplementary Duty Act, 2012 will be able to enter those returns into the e-VAT system themselves, without any interest or penalties.

The NBR also said that taxpayers will receive notifications via email and mobile phone containing a link to the e-VAT system. Through this link, they will be able to easily access and use the ‘Hard Copy Return Entry’ sub-module.

All previously submitted paper VAT returns can be entered into the e-VAT system without fines or interest until 31 March. Once this process is completed, taxpayers will be able to submit all future VAT returns online without interruption.

The NBR expressed hope that the initiative would further enhance transparency and accountability in VAT management and accelerate the full digital transformation of tax administration.

The authority has sought the overall cooperation of taxpayers to ensure the successful implementation of the initiative.