National Board of Revenue has brought amendments to the VAT rules and forms to facilitate online submission of VAT returns.
NBR in June 19 issued a statutory regulatory order brining the amendments, including replacement of the existing forms of VAT returns and turnover tax returns with new ones, in the VAT Rules-1991 so that VAT payers could file returns online.
NBR also enforced 10 provisions of the deferred Value-Added Tax and Supplementary Duty Act-2012 for businesses to receive online VAT registration and to be enlisted as turnover taxpayers.
Officials of the revenue board said that the amendments were brought to create legal scope of online VAT registration and VAT returns submission.
It could not introduce online VAT returns filling in absence of legal coverage in the existing VAT rules.
Old VAT forms were also not aligned with the VAT online system designed in line with the new VAT act which the parliament suspended up to July, 2019, they said.
They said that the law ministry observed that section 4 to section 14 of the suspended VAT act remained in force despite that the government deferred implementation of the act.
So, the sections will be effective for various issues related to VAT registration as VAT registration process under the existing VAT law-1991 became invalid.
A company will have to obtain single and central VAT registration and there
will be no scope of taking separate VAT registration for branches.
Currently, a company maintains separate VAT registration numbers for its different branches.
Some field offices, however, expressed their confusion about the effectiveness of the provisions of the 2012 VAT act as the parliament deferred the implementation of the law until July 2019.
They also said that two VAT acts—2012 act and 1991 act—would remain in place simultaneously due to the amendments.
Businesses will also face difficulties in filing their VAT returns in August on their transactions of July as many new features have been included in the new forms.
NBR will have to prepare a detailed guideline regarding the change.
NBR member (VAT policy) Rezaul Hasan told New Age that businesses would be able to file VAT returns online as a result of the amendments.
He, however, said that this facility would start when the VAT authorities would decide in this regard.
Before the introduction of online returns submission, NBR will run a pilot programme at large taxpayers unit (LTU), he informed.
Businesses will also be able to file VAT returns manually, through courier service and post offices.
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