Dhaka: The popular social media site Facebook has submitted value-added tax (VAT) or VAT of around Tk 2.5 crore. As a registered non-resident organization doing business in the country, Facebook submitted its VAT return for the first time this month.
Price water house Coopers Bangladesh submitted VAT returns on behalf of three companies registered with Facebook.
The company has deposited 2 crore 43 lakh 76 thousand 675 takas in the government treasury through Citybank NA.
Additional Commissioner of the Customs, Excise and VAT Commissionerate of Dhaka South, Pramila Sarkar, confirmed the matter to media on Thursday (July 29th).
She said Facebook had filed VAT returns in the name of three companies on July 15.
Of which Facebook Ireland Limited has deposited 2 crores 43 lakh 27 thousand 599 takas, Facebook Payments International Limited has deposited 24 thousand 70 takas and Facebook Technologies Ireland Limited has deposited 25 thousand 6 takas.
Earlier on June 13, Facebook took Business Identification Number (BIN) to get direct VAT-related services including VAT payment and VAT return submission. Facebook has received three separate BIN registrations in response to online applications.
Under VAT law, local VAT agents are responsible for paying VAT. Companies have been facing various problems since 2019 to get VAT registration and submit VAT returns. So there was a demand from them to get this service directly as per VAT law.
According to the ‘Value Added Tax and Supplementary Duty Act, 2012', companies like Facebook, YouTube, Google have to take VAT registration and set up an office in Bangladesh or hire a VAT agent. The NBR later decided to bring it under a separate VAT registration number in early 2020.
On the other hand, according to the Value Added Tax and Supplementary Duty Act 2012 and the Value Added Tax and Supplementary Rules 2016, VAT registrants are required to file a VAT return within 15 days of the end of the month.
Otherwise, there is provision for imposition of interest and penalty. For this reason, all the customs, excise and VAT offices in the country are open during the strict restrictions announced by the government to assist traders in filing monthly VAT returns and to facilitate the submission of receipts.