NBR sues online shopping platform over VAT evasion

The VAT Audit, Intelligence & Investigation Directorate under the National Board of Revenue (NBR) on Thursday sued the online shopping platform Shirtology over VAT evasion allegations.

A team of VAT detectives led by Assistant Director Md Mahidul Islam conducted a drive at the company's office in the Mirpur area of Dhaka on 19 November this year and seized some financial documents.

After an examination of the papers, the directorate found that since June 2019, Shirtology had sold goods worth Tk60 lakh from their online platform. If a 7.5% VAT on that amount is imposed, the sum stands at more than Tk4 lakh, which the company has not paid to the NBR, read a press release.

All businesses in Bangladesh are required by law to register with the NBR to pay value added tax, within 15 days of launching their operations.

In the release, Director General Moinul Khan of the VAT intelligence directorate said, "The Customs, Excise & VAT Commissionerate of Dhaka West will handle the case filed against Shirtology.

"If the allegations against the company are proven in court, Shirtology will have to pay the VAT amount that is due, and it may have to pay double that amount in fines."

He added that detectives are currently collecting information on other online platforms, which are running their businesses without paying VAT, and legal action will be taken against them if any anomalies are found.