Dhaka — Google has paid value-added tax (VAT) to the government of Bangladesh. Google took Business Identification Number (BIN) on May 25 to get VAT related services directly including VAT payment and VAT return submission.
Then for the first time on Thursday, 55 lakh 77 thousand 704 takas for May and 1 crore 73 lakh 76 thousand 833 taka for June has been submitted through the local agent of the company.
Thursday (August 5) Dhaka South Customs, Excise, and VAT Commissionerate Commissioner. Humayun Kabir has confirmed the matter.
“I received Google’s May and June VAT returns today,” he said. Google has collected a total of 2 crore 29 lakh 54 thousand 537 taka VAT in May and June.
Earlier, the popular social media Facebook, as a registered non-resident organization, first submitted about 2 crore 44 lakh VAT on July 29. Of which Facebook Ireland Limited has deposited 2 crore 43 lakh 27 thousand 599 takas, Facebook Payments International Limited 24 thousand 70 taka and Facebook Technologies Ireland Limited 25 thousand 6 taka.
Under VAT law, local VAT agents are responsible for paying VAT. Foreign 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. In early 2020, the NBR decided to bring these companies under a separate VAT registration number.