National Board of Revenue has reinstated its service to issue instantly business identification number online without prior physical verification of authenticity of information provided by the applicants.
Like previous system, traders will now be able to obtain e‑BINs instantly after making application at VAT online system, according to a decision of NBR.
VAT officials will conduct physical verification to be confirmed about the accuracy of information and address of businesses after issuance of e‑BINs.
Traders will come under the Digital Security Act 2018 if they provide wrong information to obtain e-BINs, commonly known as VAT registration number.
VAT wing of NBR has recently issued an instruction to its field offices in this connection after a meeting between NBR and Bangladesh Investment Development Authority decided to bring changes in the system to reduce hassle of traders in the process of obtaining BINs and facilitate ease of doing business.
Earlier on February, NBR scrapped the provision of instant issuance of e-BINs and introduced prior physical inspection following detection of huge fake e-BINs.
According to estimation of field level VAT offices, around 50 per cent of new e-BINs are fake as unscrupulous traders obtain the VAT registration by providing wrong information, including address and nature of businesses, taking the advantage of absence of physical verification.
Officials said that NBR retreated from its earlier decision at a meeting where prime minister’s private industry and investment adviser Salman F Rahman was also present to keep the VAT automation uninterrupted and ensure taxpayers’ friendly environment.
The decision may also improve the position of Bangladesh in the ease of doing business index, according to the decision.
At the meeting, Salman said that NBR could issue e-BINs instantly as there was scope of conducting post verification. NBR may take stern and exemplary actions, including filing case and suspending e-BINs, against traders who would obtain e-BINs providing wrong or false information.
As per the decision of the meeting, e-BINs will be issued instantly and later field level officials will conduct physical inspection to verify authenticity of information and existence of businesses within shortest possible time.
VAT Online Project will disseminate a message through the VAT Online Web Portal warning traders of providing fake or wrong information to prevent registration of fake e-BINs.
Giving wrong information will be an offence under the Digital Security Act-2018, the meeting decided.
VAT wing of NBR in its instruction issued on April 15 asked its field level VAT commissionerates and VAT Online Project to take necessary steps to implement the decision.
In addition, NBR also asked VAT commissioners to take legal steps including realising applicable revenue and cancellation of VAT registration against traders who obtained e-BINs giving fake and wrong information.
Field level VAT officials, however, expressed apprehension that traders might misuse the provision like previous days.
NBR introduced e-BINs on March 2017 so that traders can obtain VAT registration number instantly from anywhere and since then some 1.63 lakh e-BINs were issued.
Of the number, businesses obtained around 1 lakh new e-BINs.
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