Only e-BINs to be allowed from January

Staff Correspondent | Published: 22:33, Jul 27,2017

 
 

Old business identification numbers will become invalid from January next year and online generated BINs (e-BINs) will be mandatory, according to a public notice issued by the National Board of Revenue on Thursday.
Traders who now have both 11-digit old BINs and online generated e-BINs will have to use online VAT numbers for conducting their business activities including import, export, manufacturing, participation in tenders and other activities.
Businesses, however, will have to obtain separate e-BINs, commonly known as VAT registration numbers, for all their business units as the central nine-digit BINs will become ineffective under the existing VAT Act-1991.
The revenue board on March 23 started issuing central VAT registration numbers or only one number for a business house irrespective of the number of its branches or factories under the new VAT Act-2012 as part of planned implementation of the law from July 1 which the government deferred for two more years until 2019.
Under the 1991 law, a trader needs obtaining separate BINs for every branch or unit of the company and submitting separate returns for the units at VAT offices based on geographical locations of the units.
The revenue board decided to continue with the e-BINs as part of digitisation of VAT registration process to make it transparent, speedy and hassle-free, the notice stated.
In addition, businesses also requested the NBR to continue the online VAT registration system, it said.
Obtaining e-BINs is not in any way related to 2012 VAT law, rather it is a move to expedite the pace of services related to VAT registration and increasing the number of VAT returns, said the NBR notice.
Currently, 8.50 lakh businesses have 11-digit BINs but of which only around 37,000 submit VAT returns.
According to the NBR notice, traders who have central BINs under the old law will be able to conduct their business activities with
central 11-digit after receiving e-BINs.
Other entities will receive unit-wise VAT registration number and submit VAT returns at field level VAT offices as per geographical location of the factory or business office.
Traders who want to obtain central e-BINs will have to apply to the revenue board, it said.
The notice said that businesses would have to obtain e-BINs within December 31 as old numbers would become ineffective after that time.
The revenue board will carry out necessary reforms in the VAT online system in line with the provisions of the old law, it said.
VAT online system is being implemented under the VAT Online Project at a cost of Tk 551 crore, mostly financed by World Bank.
Until July 26, some 43,072 businesses obtained e-BINs.
A World Bank mission that visited Bangladesh from July 16 to July 20 put a condition of continuation of VAT online system for getting the promised fund, officials said.  

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