The central bank issued a circular to this effect on Monday
Bangladesh Bank yesterday directed all dealer banks trading foreign currencies not to allow importers to open letter of credit (LC) without having the 13-digit value added tax (VAT) registration number after October 31.
Currently, many of importers are opening LC with the old nine- or 11-digit VAT registration number.
The central bank issued a circular to this effect on Monday.
Earlier, National Board of Revenue (NBR) in a letter requested Bangladesh Bank to give necessary directives to all commercial banks for ensuring the 13-digit VAT registration number for importers in LC opening.
The letter, signed by VAT online Project Director Syed Mushfiqur Rahman, said the NBR asked taxpayers to take the 13-digit VAT registration number instead of the old nine- or 11-digit numbers, as part of ‘VAT and Supplementary Duty Act, 2012’ implementation.
The deadline for taking the 13-digit number was till August 14 this year. But a good number of taxpayers failed to get it by the deadline, reads the letter.
Due to the failure, VAT collection was interrupted, said the NBR, adding that the 13-digit VAT registration number was mandatory for monthly online return submission by VAT payers.
Moreover, the dealer banks were still opening LCs without the 13-digit registration number, which the NBR fears will create complexity in future, reads the letter attached with the circular.
The revenue board, however, extended the deadline of changing VAT registration number to 13 digits till October 31 and after the day the NBR will not allow the old numbers, the letter adds.
The NBR introduced the 13-digit VAT registration number for better implementation of new VAT law, effective from July 1, 2019. Of the 13 digits, the first nine are for business identification and the rest four for business address.