Large businesses, having an annual turnover above Tk 50 million, would get yet another time extension until February 29 to install VAT software.
The deadline for mandatory installation of the software expired on December 31, 2019.
The National Board of Revenue’s (NBR) VAT Online Project (VOP) has decided to issue an order shortly by extending the timeframe for installing the software after it found poor response from the businesses.
The VAT officials will take punitive actions in case of failure in installing the software within the timeframe.
Sources said less than 200 out of 6,500 eligible businesses procured the software so far. The deadline has been extended several times due to lack of preparedness of both the NBR and the businesses to install the prescribed software.
At first, the board issued an order on September 11, 2018, asking the large companies to procure and use the VAT software by January 1, 2019. Later, the deadline was extended to September 1, 2019.
The NBR asked the businesses to maintain records of sales and other transactions by using the VAT software.
All the companies, however, are yet to be prepared to procure and install the software from the NBR’s designated companies. The NBR’s VAT Wing has so far enlisted 24 firms for supplying the software as per its prescribed features.
Farhana A Rahman, Chief Executive Officer of UY Systems Ltd – one of the NBR-listed software firms, said only 32 of the eligible large businesses have obtained the customized software as per specification, while other are still shy to disclose their data.
Ms Rahman, who is also Senior Vice President of Bangladesh Association of Software and Information Services (BASIS), said it is known to all that many of the businesses use two-three books of accounts to evade VAT. “We have got work orders, but cannot go for implementation due to non-availability of data.”
The NBR-listed software companies are facing difficulties, as they have already invested in manpower and logistics, but they are yet to get any return from the investment, she added.
Ms Rahman urged the NBR to strengthen enforcement to ensure installation of the VAT software for the sake of collecting VAT properly from the large businesses. She, however, said some of the businesses are willing to show their undisclosed wealth through the software, which could be encouraged by offering special opportunity.
