Bangladesh Bank (BB) has given new instructions to commercial banks by changing the previous decision on the VAT issues of tech giants like Google, Facebook and Amazon.
The central bank has asked the authorized dealer (AD) banks to submit VAT details of the non-resident service providers, including the tech giants to the customs office instead of the VAT policy department within the first seven days of the next month.
Before the directive, the banks used to send this information to the VAT Policy department of the National Board of Revenue (NBR).
Regarding this, an official of Bangladesh Bank, seeking anonymity, said: “Earlier, our cooperation was sought from the NBR on the issue of VAT of non-resident service providers. Banks were then given a directive to report their accounts to the NBR, but since these companies submit VAT to the VAT Commissionerate of Dhaka South, they have requested to change it.”
The circular said: "As per the recent decision of the NBR, it has been suggested to send the prescribed VAT member (VAT policy) to the commissioner of Customs, Excise and VAT Commissionerate of Dhaka (South) office in the capital's Kakrail IDEB building instead of the Board of Revenue."
The foreign exchange policy department of BB sent this circular to the banks on Wednesday.
Earlier, the central bank issued a circular in this regard on August 25.
The circular instructed authorized dealer banks to send the statements regularly through their head offices within seven days of the following month.
It also mentioned that as per a meeting held at the NBR on June 24 earlier this year, it was decided that the banks would submit the statements of VAT deduction against services rendered by the non-resident taxpayers to the NBR and the concerned VAT agents.
The central bank, in this regard, has prepared a uniform statement and instructed the banks to submit the statements to members of the NBR and the concerned VAT agents.
It also said that the statement would include VAT deducted against remittances under general or specific permissions from the central bank.
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