Monday, 20 September, 2021

Banks get new directive on VAT report of net giants

  • Staff Correspondent
  • 26 August, 2021 12:00 AM
  • Print news

Bangladesh Bank directed banks to submit monthly statement of VAT deducted at source against services provided by Facebook, Google, Amazon and non-residents within seven working days after a month ends.

 The central bank issued the directive on Wednesday.

It said the commercial banks will have to submit the tax-cutting statement in a prescribed form to the respective VAT agent and the National Board of Revenue (NBR).

 The Authorized Dealer banks (ADs) will submit the statement of source tax-cutting on outward remittance against services of Facebook, Google, Amazon and non-resident individuals to local VAT agent and the NBR through the head office of respective ADs.

Usually, the ADs send the outward remittance on a general priority basis.

 The net giants Facebook, Google and Amazon have already taken VAT registration and paid VAT to the NBR.  But a complaint arose from the business experts that the sum paid by the three giant companies as VAT did not reflect their real income in Bangladesh. As a result, the revenue board on August 24 held an internal meeting to find a pathway checking evasion of VAT/Tax in the business using the social platform.

The NBR requested the BB to instruct banks to send advance tax/ source tax reports of a month within the next seven working days to NBR after the month ends.

The NBR then will go for verification of the real value of products and services on the basis of providing a statement, the sources related with matter said.