Individual taxpayers will also have to submit e-invoices online from the next financial year
The National Board of Revenue (NBR) has introduced an e-payment system for VAT payment. From Thursday, the traders will be able to deposit VAT from home through three banks under this system.
From the next financial year, individual taxpayers will also have to submit e-invoices (electronic treasury invoices) online, said Abu Hena Md Rahmatul Muneem, NBR chairman, at the inaugural ceremony of the VAT e-payment system at the NBR on Thursday.
Regarding e-invoices, he said that the finance department has been developing a software called e-invoices.
Using the software, anyone can deposit money in the Bangladesh Bank treasury. The depositor will also receive an electronic treasury invoice.
At first, the depositor will get an invoice just like ordinary invoices, which will have a security barcode.
They will introduce it for individual taxpayers in the first phase, he said.
"The piloting will be done initially in Tax Zone-4, in Dhaka this year. Taxpayers of this tax region will get the opportunity to pay tax through e-invoice. A confirmation number will come with the submission," said the NBR chairman.
If the piloting is successful, we will expand it. I will try to make e-invoicing mandatory from next year, he added.
Using the e-payment system introduced for VAT, the registered or listed companies can deposit VAT directly from their bank account to the government treasury sitting at home.
The taxpayer will send instructions to his bank to pay VAT using the online method. The concerned bank will request Bangladesh Bank's RTGS (Real Time Gross Statement) Automated System to submit the prescribed account code.
Bangladesh Bank will immediately generate an automated invoice number and deposit the money to the account of the NBR.
Besides, Bangladesh Bank will send the deposit information to the Integrated VAT Administration System (IVAS), which will be stored at the IVAS of the taxpayer.
At the same time Bangladesh Bank will also send the deposit information to the IVAS Plus system. IVAS will send an e-payment confirmation message to the taxpayer by e-mail, which will be displayed in the taxpayer's monthly return as proof of treasury deposit.
All VAT related taxes (VAT, turnover tax, supplementary duty, penalty, interest etc.) can be paid using the e-payment system.
Currently, the e-payment system is being launched through three banks, namely - HSBC, Prime Bank and Midland Bank.
It will be possible to involve all the banks in this process by next December.
"For the successful implementation of the new law, the launching of IVAS has been taken up through the VAT online project," said the NBR chairman regarding the new e-payment system of VAT.
Of the 16 IVAS modules, three have already been implemented: Registration, Return and Taxpayer Account Modules. Other modules will be implemented in phases, he added.
Mohammad Muslim Chowdhury, comptroller and auditor general of Bangladesh; Md Ashadul Islam, senior secretary of the Financial Institutions Division, among others were virtually present at the event.