NBR extends deadline for mandatory spl VAT software use to Dec 31

Staff Correspondent | Published: 00:00, Dec 13,2019

 
 

A file photo shows a man arranging fish at a super store outlet in Dhaka. The National Board of Revenue has deferred until December 31 the mandatory use of specialised VAT software by businesses having annual turnover of Tk 5 crore or above as the board failed to execute its plan to introduce the software by September 1. — New Age photo

The National Board of Revenue has deferred until December 31 the mandatory use of specialised VAT software by businesses having annual turnover of Tk 5 crore or above as the board failed to execute its plan to introduce the software by September 1.

The revenue board on June 30 made the use of specialised software specified by the board from September 1 to maintain records of sales and other transactions involving value-added tax by the businesses.

NBR officials said that businesses, mainly large ones including multinational companies, had demanded extending the deadline as they could not prepare themselves to adopt the software saying that it required several months to modify the existing software in line with the changes in the VAT law.

A NBR committee on the issue had also recommended extending the deadline, they said.

In this situation, VAT wing of the NBR on Sunday issued a general order saying that the decision of using the software would be effective from December 31.

The revenue board has so far enlisted 17 firms for providing the software with features specified by the revenue board to the businesses and service providing entities for the purpose of record keeping and payment of VAT.

The software firms include UY Systems Ltd, Ennovia Technologies Ltd, Dhurpadi Techno Consortium Ltd, Symphony Softtech Ltd, Unisoft Systems Ltd, Mediasoft Data Systems Ltd, Best Business Bond Ltd, CSL Software Resources Ltd, Allied Information Technology Ltd, Jubosoft Information Systems Pvt Ltd, Divine IT Ltd, Subra Systems Ltd, Techno Haven Ltd, Logic Software Ltd, Webns Technology Ltd, Southtech Ltd and Cursor Ltd.

Another 8-10 software developing firms are also set to get the nod to supply the record keeping and VAT processing software, the officials said.

The NBR will enlist as much firms as required to ensure installation of the software at all eligible business entities in the country to ensure transparency and accuracy in accounts and proper VAT collection from the sector, they added.

According to the NBR, businesses will have to procure the software from the selected firms and will preserve books of accounts and VAT-related documents using the software and provide the VAT officials with data as per requirement of VAT offices.

Businesses which will use own software will have to update the existing software as per the NBR-approved specifications.

Most of the MNCs and local big companies usually use their own software for the purpose, the NBR officials said.

They said that such types of companies had been seeking time to update their software.

The software should have systems of automated report generation and printing facility of VAT returns and other documents related to purchase, sales and challans, according to the NBR specifications.

VAT officials must have access to the software for audit and other examinations.

The software must also have the complete security system to protect it from hacking and any type of tampering.

According to the NBR data, 1.20 lakh businesses so far obtained electronic business identification numbers from the VAT online system.

Of those, businesses having annual turnover or sales worth Tk 5 crore or above will have to use the software.

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