About 22pc business enterprises do not submit VAT returns

Staff Reporter :
Around 22 percent of business enterprises do not submit VAT returns though the number of total enterprises under VAT registration is 3,72,934 till August this year, National Board of Revenue (NBR) sources said.
Sources said that a total of 3,71,934 business enterprises have come under the VAT registration. Of these, 2,90,899 enterprises regularly submit VAT returns, which means 21.79 percent do not submit VAT returns.
The number of VAT returnees is 78.21 percent as of now, NRB sources said on Wednesday.
A senior officer of NBR VAT Division said that a total of 3,71,934 business enterprises have been registered under VAT provision. Of these, 2,43,369 enterprises submit returns through online platforms.
It means around 83.66 percent enterprises submit VAT returns through online platforms, the official said.
NBR has been expecting that the submission of online VAT returns will be 85 percent by the end of the year.
The online platform is being strengthened and the automation will reduce the complexity of such matters.
NBR sources said the VAT registered enterprises in FY2020-21 was two lakh and 91 thousand.
After the enactment of the new VAT Act in July 2019, the Electronic Business Identification Number (e-BIN) was made compulsory. None can submit VAT returns without e-BIN. And the return has to be submitted by 15 days of each month.
Currently there are 12 VAT commissionerate offices across the country. Of them, five are located in the capital.
In order to increase the VAT net, all the eligible enterprises are being brought under VAT net compulsorily, NBR said.
Earlier the business entities were given VAT registration through the traditional system and it had an 11 digit number on the registration paper. After the introduction of online VAT registration three years ago, the digit came down to nine which is now the e-BIN.
This e-BIN digit is indispensible for the submission of VAT return monthly. The VAT is realised based on the return. The return must contain all transactions of the enterprise.
As per the new VAT regulation, no VAT will be realised from the entity if the annual transaction is below Tk 50 lakh.
When the transaction is above Tk 50 lakh and
below three crore taka, the turnover VAT rate will be four percent of the total transaction. The regular VAT rate will be applicable for others.
Only the enterprises which provide turnover VAT and regular VAT will have to take e-BIN.
As per the new VAT Act, a fine of Tk 10,000 will be applicable if any enterprise does not take e-BIN. Even if the entity does not properly display the registration certificate, a fine of Tk10,000 will be applicable as well.
Under the previous VAT law, around 8.5 lakh business enterprises came under VAT nation. Most of them did not submit VAT returns properly.
NBR sources said that the new online system will be effective to reduce such gaps in collecting VAT from eligible enterprises.