Field level staffers call for fresh guidelines

FT ONLINE

Field level officials have requested the revenue board for issuing a fresh guidelines or user manual for filing VAT (value added tax) returns in the new form to steer clear of confusions.

They said both traders and field level officials need clarifications on some points of the new form, which has been issued during the current fiscal year (FY).

On June 18, the National Board of Revenue (NBR) issued a statutory regulatory order introducing online-compatible VAT returns form, scrapping the older version.

The time for the submission of VAT returns is due on August 15, 2018 on the basis of business transaction in the month of July.

VAT officials have found some inconsistencies and ambiguities in the new form.

Filing and processing of VAT returns would be difficult without a user guidelines for filling out the new return form.

VAT officials said they have received several requests from trade bodies and field level staffers to resolve the confusions regarding inconsistencies in the new VAT form.

They said the old VAT return form has a two-page instructions attached with it.

The new form does not have such instructions though it is a comprehensive and detailed one, they added.

People familiar with the situation said the delay in issuing user guidelines for filing out the new VAT return form may slow down the submission this month.

It is also needed to make taxpayers aware about the changes in the VAT returns form, known as Mushok 19, they said.

In recent letters, some field-level VAT commissionerates said VAT payers are not properly informed about the new VAT forms although it is mandatory to submit VAT returns.

VAT officials also need training to understand the new format and process the return, the letter said.

Bangladesh office of PricewaterhouseCoopers, in an analysis, also found some limitations and inconsistencies in the form.

It has requested the NBR for issuing clarifications on the issues.

In the new form, there is a lack of space for providing addresses of business entities.

It is also not clear whether the supply price of goods with standard rate would be VAT-included or excluded.

According to VAT and Supplementary Duty Act-2012, the supply price of goods will be VAT-included.

In contrast, the price will be VAT-excluded according to VAT Act-1992.

The issue of adjustment related to the value or quantity in the new form needs clarification, officials said.

In the new form, there is no column for providing the economic code number of supplementary duty and penalty and space for mentioning the amount deposited through treasury challan (invoice).

VAT officials also identified the lack of space for placing comments on scrutiny, receiving space and other important issues.

Manzur Ahmed, a VAT expert and adviser of the Bangladesh Chamber of Industries (BCI), however, refuted the allegations and termed the new form a user-friendly.

He said expert panels from the NBR and the Federation of Bangladesh Chambers of Commerce and Industry have reviewed the new form in three phases and removed its ambiguity.

Mr Ahmed said the form itself is self-explanatory and does not need any separate instructions.