Online VAT returns made mandatory for 11 sectors

Businesses in 11 key production and service sectors, including cigarettes, medicines, mobile phones and banking, will now have to submit their VAT returns online through the e-VAT portal of the National Board of Revenue (NBR).

The NBR's VAT wing issued an order on Sunday, signed by NBR Member (VAT Policy) Md Azizur Rahman.

The decision was made under Section 64(5) of the Value Added Tax and Supplementary Duty Act, 2012, and Rule 118A of the Value Added Tax and Supplementary Duty Rules, 2016.

Under the new order, businesses in eight production sectors and three service sectors must submit their VAT returns through the NBR's designated e-VAT portal.

The production sectors are cigarettes, mobile phones, MS products, medicines, beverages, cement, tiles, and paints and varnishes.

The three service sectors are insurance, banking and non-banking financial services and mobile financial services.

The NBR said the online filing requirement will also apply to a registered person or business if it supplies any of the listed products or services along with other business or service activities.

The order also cancelled all previous orders on mandatory online filing of VAT returns from the date of the new order.

However, the NBR said it may add new sectors to the list or remove existing sectors when necessary.

Businesses covered by the order will now have to use the e-VAT portal to submit their VAT returns.