Businesses asked to redo VAT reg

All existing VAT-registered businesses will have to provide some additional information this month as per new VAT Act-2012 to keep their nine-digit Business Identification Number (BIN) active.

Businesses will have to sign-up again on the site of electronic BIN (e-BIN) and fill out VAT 2.1 form in line with the amended VAT act and rules by July 31.

BIN is mandatory for all major business activities, including export and import.

There are a total of 166,000 new e-BIN holders who will have to update their existing information by filling out the VAT registration forms again.

Officials said the National Board of Revenue (NBR) took the initiative to clean up the fake BINs from the database.

Talking to the FE on Wednesday, VAT Online project director Syed Mushfiqur Rahman said all the businesses will have to update their BIN forms within the given timeframe to keep their registration valid.

"We will deactivate the BINs for the businesses that will not comply with the directives within the deadline," he said.

The VAT online project will issue a public notice in this regard shortly to sensitise the businesses aware about it, he added.

The project is now upgrading the system to allow BIN holders to update their information by entering their respective BIN forms, he added.

Additional information includes branch names, input-output data, names of major capital machinery and names of directors and owners.

Under the new VAT law, businesses will be able to operate their activities under a unique BIN instead of separate BINs for its branches.

Officials said the move will help the board delist the fake BINs that some unscrupulous traders obtained earlier to take undue advantage in the customs port.

NBR issues instant BINs to the businesses without verification. VAT officials verify the information provided by enterprises later.

VAT officials said they could not trace almost half of the existing BIN holders as the addresses and other information were false.

A number of commercial importers have obtained tax-benefit by registering themselves as manufacturers under the system.

The NBR introduced e-BINs in March 2017 so that traders could obtain VAT registration number instantly from anywhere as part of implementation of online VAT system under the new VAT law.

Solaiman Parsee Faisal, director (VAT and Tax) of the Bangladesh Pipe and Tube well Merchant Association, said the genuine businesses have to suffer for a section of unscrupulous businesses.

"We have obtained new e-BINs by providing all information. Now, we have to spare time again for keeping our VAT registration numbers active," he added.

He said the government should ease the VAT registration process to make it hassle-free.