National Board of Revenue has made use of customised VAT processing software mandatory for large businesses and service providing entities having annual turnover of Tk 5 crore and above.
Value-added tax wing of NBR on Tuesday issued a general order making the use of the software mandatory from January 1, 2019.
According to the order, NBR-approved developers will develop the software as per specifications of the VAT authorities.
VAT-registered entities or those eligible to be registered will procure it from the developers.
Businesses will preserve books of accounts and VAT-related documents using the software and provide as per requirement of VAT offices.
Companies having annual turnover below Tk 5 crore will also be able to use the software if they want.
Those which are using personalised software with approval of the VAT commissioner concerned will also have to update the software as per new specifications within September 30.
NBR has also determined the specifications of the software.
As per the order, the proposed software will comply with the VAT act, rules, gazette notifications and other orders.
It will have automation facility in line with NBR automation system.
It should have systems of automated report generation and printing facility of VAT returns and other documents related to purchase, sales and current accounts.
VAT officials must have access to the software for audit and other examinations.
In the order, NBR has also set the qualifications required of the software developers for being enlisted with the tax authorities.
Interested software developing company must be registered as a private or public limited company with the Registrar of Joint Stock Companies and Firms and must have five-year experiences as a software developer and after-sale service provider.
NBR also formed a committee, headed by LTU (VAT) commissioner, to scrutinise the applications of interested developers.
A senior official said that NBR took the initiative to introduce its prescribed software for large business entities to ensure transparency and accuracy in accounts.