Only one-fourth of the existing VAT-paying business entities have so far been registered with the VAT online system, making the National Board of Revenue worried over a smooth implementation of the new value-added tax regime from July 1 this year.
Till June 2, a total of 23,009 businesses have obtained new nine-digit online business identification numbers (e-BINs), commonly known as VAT identification number, from online VAT registration system, according to the NBR data.
Of which, only 9,768 business entities, or 26.50 per cent of total VAT-paying entities, have obtained nine-digit new e-BINs replacing their 11-digit old BINs by being reregistered with the VAT online system, also known as Integrated VAT Administration System or IVAS.
According to the statistics received from the field offices of the revenue board, although the number of existing BIN holders are 8.64 lakh in the country, only 36, 858 or 4.27 per cent of them submit VAT returns and pay VAT regularly.
Of the total registered businesses, around 58 per cent of the new businesses received e-BINs while 42 per cent of the existing businesses replaced their old BINs.
Under such bleak scenario, NBR chairman Md Nojibur Rahman asked the field-level VAT offices to complete re-registration of the existing VAT-paying entities with the online system by June 15 to ensure smooth implementation of the VAT online system under the new VAT and Supplementary Duty Act-2012.
The new VAT law will come into force from July 1 this year.
‘Implementation of the new VAT law, revenue collection and operation of business activities of businesses may face interruption unless re-registration process of the existing VAT-paying businesses cannot be completed,’ NBR chairman said in a letter to VAT commissioners.
He asked the commissioners to send the daily progress report on the issue to the NBR and the VAT Online Project.
Officials said that the number of re-registered businesses was not satisfactory at all as only 25 days were left to bring at least the existing VAT-payers under the online system.
Field offices will have to ensure re-registration of the remaining 27,090 regular VAT-payers under the online system in next few days to avoid negative impact on VAT law implementation, they said.
The revenue board launched the online VAT registration system from March 23 this year.
All the existing BIN holders will have to replace their BINs with nine-digit e-BINs within June 30 as the old BINs will become invalid from July 1.
Businesses will not be able to conduct any business activities including conducting import and export, opening letter of credit, supply of taxable goods and services from July 1 using old BINs.
In the letter, the NBR chairman asked the commissioners of 12 VAT commissionerates to take all-out steps, whatever they consider necessary, including holding fairs to complete re-registration activities within the scheduled time.
The commissioners were also asked to take measures to encourage other businesses which have BINs but don’t submit returns to be registered with the online system, according to the letter.
They were also asked to make the businesses prepared for maintaining accounts and documents including purchase register, sales register and challans in line with the format of the new VAT law.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Tax