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Vat-Registered Entities

Businesses must display BIN on premises

Staff Correspondent | Published: 22:39, Jul 01,2020

 
 

It has been made mandatory for Value Added Tax-registered businesses and shops to display their business identification certificates on their premises from now on.

Business and shop owners will face legal action for not exhibiting the BIN certificate, known as VAT registration certificate, according to the National Board of Revenue.

The NBR’s Value Added Tax wing on Tuesday issued an instruction to its field level offices asking them to ensure compliance with the provision of the VAT law related to exhibiting the certificate.

In the letter, NBR member (VAT Implementation and IT) Md Jamal Hossain said that there was reluctance on the part of both the VAT officials and businesses in complying with the provision.

He said that as per the VAT and Supplementary Duty Act-2012, every VAT registered business will have to display the VAT registration certificate or turnover so that it will be visible to all on their premises.

Non-compliance with the provision is a punishable offence as per the law, he said.

It was found that many VAT registered businesses were not complying with the provision despite issuance of several instructions while VAT officials were also not paying the required attention to the matter, according to the letter.

NBR chairman Abu Hena Md Rahmatul Muneem in a recent meeting also expressed his dissatisfaction regarding non-compliance with the provision.

In the letter, the VAT officials were asked to under take motivational activities and conduct surveys to ensure that the traders displayed the VAT documents properly.

The NBR also asked the field level VAT commissioners to furnish reports on progress of compliance with the issue by July 16, the letter said.

The officials said that the NBR took the move to increase revenue collection through enhancing compliance in the new fiscal year 2020-2021 that began on Wednesday.

They said that compliance with the provision would help the VAT offices to identify the VAT registered and non-registered businesses, shops and other entities.

Consumers will also feel comfort to pay VAT if they know the status of the shops, they added.

They said that the VAT officials could impose penalties of up to Tk 10,000 for non-compliance.

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