NBR makes online VAT returns mandatory for 11 sectors

The National Board of Revenue (NBR) has made online submission of VAT returns mandatory for 11 major sectors, bringing banks, insurers, mobile financial services, cigarette and mobile-phone manufacturers under a tighter digital tax-compliance regime.

The revenue authority issued a directive on Monday requiring businesses in the specified sectors to file their VAT returns through the e-VAT portal, replacing previous arrangements for submitting returns.
The sectors covered by the order are cigarettes, mobile phones, insurance, banking and non-banking financial services, mobile banking, MS products, pharmaceuticals, beverages, cement, tiles, and paints and varnishes.

The move is expected to strengthen the NBR’s ability to monitor VAT collections, track business transactions and identify discrepancies in tax declarations across some of the country’s largest revenue-generating sectors.

The directive was issued under the Value Added Tax and Supplementary Duty Act, 2012, and the relevant rules, making online filing a mandatory requirement for registered entities operating in the specified sectors.

The order also closes a potential loophole by extending the requirement to businesses that supply any of the specified goods or services while simultaneously conducting other types of business.
In such cases, the registered entity will also be required to submit its VAT return online, according to the NBR directive.

The latest order cancels all previous NBR instructions relating to online submission of VAT returns, effectively consolidating the requirement under the new directive.

The NBR has also retained the authority to add sectors to or remove sectors from the list at any time, giving the revenue authority flexibility to expand digital VAT compliance.

The move comes as the government seeks to strengthen revenue mobilisation and modernise tax administration through greater use of digital systems.

Mandatory e-filing is also expected to reduce reliance on manual processes, improve access to transaction data and make it easier for the tax authority to cross-check VAT declarations against information available from businesses and other sources.

Meanwhile, the NBR has extended the deadline for companies to submit their income tax returns for the 2025-26 tax year by one month, according to an official notification.

The new deadline has been set at April 15, replacing the previous deadline of March 15.

An NBR official confirmed the extension, which applies specifically to corporate taxpayers for the 2025-26 tax year.

The separate extension of the corporate tax-return deadline comes as the revenue authority pushes businesses towards greater compliance while expanding the use of digital systems in tax administration.