Non-government organisations would have to pay value-added tax on different types of fees including registration, renewal of registration, change of names and amendment of constitutions that they paid to the government since July 2010, according to the National Board of Revenue.
Field level VAT offices of the revenue board has been requesting the NGO Affairs Bureau of Prime Minister’s Office for collection of outstanding and regular VAT at the rate of 15 per cent on fees and charges over the last few months.
On November 8, the bureau issued an office order asking the NGOs to pay VAT dues for last six and half years since July 2010.
The Bureau has also published two separate lists of local and foreign NGOs asking them to pay VAT to the government exchequer.
The organisations would have to deposit the dues and attach the main copy of challan with the application submitted to the bureau for any service from now on.
The first list contained the names of 619 NGOs with dues in VAT on registration fee while the second list included names of 2,312 NGOs who would have to pay VAT on fees for renewal of registration, change of names and amendments of respective constitutions.
The various fees for local NGOs ranged from Tk 7,000 to Tk 20,000 and for foreign NGOs from Tk 70,000 to Tk 1,65,000.
The NGOAB, however, in August increased the fees by 100 per cent for the services.
Local NGOs would have to pay Tk 30,000 for registration, Tk 26,000 for change in name of organisation, Tk 13,000 for duplicate registration certificate and for amendment of constitution, respectively.
Earlier, registration fee for local NGOs was Tk 20,000.
For foreign NGOs, the registration fee has been fixed at $ 6,000 from previous $ 3,000.
In addition, the organisations would need to pay 15 per cent VAT on the fees.
A total of 2,565 local NGOs and 256 foreign NGOs were operating in the country with registration from the bureau.
According to VAT law, 15 per cent VAT would be applicable on any type of fees and charges imposed for registration and similar services, officials of the revenue board said.
They added that the NGO affairs bureau did not deduct VAT while taking the fees from the organisations earlier.
Field offices in late last year detected the evasion and asked the bureau to comply with the law by collecting the dues and regular VAT while providing the services.
According to the law, the deducting authority would be responsible for payment of evaded VAT to the government exchequer.
Hence, the bureau has taken initiative to collect the dues, they said.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Tax