NBR has made the move with the aim of collecting untaxed money from the online-based advertising sites.
To run their business in Bangladesh, internet giants, such as Facebook, Google, Youtube and other digital platforms, have to file for value-added tax (VAT) registration once a new law comes into force from July 1.
The National Board of Revenue (NBR) has made the move with the aim of collecting untaxed money from online-based advertising, which is siphoning off huge amounts of money from the economy, reports BSS.
NBR’s VAT Online Project Director Syed Mushfikur Rahman said the government does not get adequate VAT from the most popular social networking site, Facebook, video streaming site Youtube, search engine giant Google, and other digital platforms.
“Actually, these sites and platforms have no offices or agents in Bangladesh, but they have to do business complying with the local law,” he said.
NBR officials said as per Section 19 of the “Value-Added Tax and Supplementary Duty Act 2012”, companies like Facebook, Google and Youtube have to go for VAT registration and pay the tax through local offices or agents.
NBR has no data regarding the business volume of these companies, as the lion’s share of the money is being channeled out through unauthorized means.