Businesses will not be allowed to register for online Value Added Tax (VAT) services after the deadline expires on November 30.
The National Board of Revenue (NBR) has set this deadline for all businesses to acquire the 13-digit Electronic Business Identification Number (e-BIN).
The NBR will not allow importers to open letters of credit with the old 11-digit old business identification number from December 1. Businesses will also not be able to pay VAT using the old BIN.
But new businesses will be able to get their online business identification numbers from any of the revenue board's field-level offices across the country any time under the newly-introduced Value Added Tax and Supplementary Duty Act.
Around one lakh organisations got new e-BINs till November 27. There are still 7.75 lakh businesses running with the old BINs which will become invalid from December 1.
Abdul Mannan Shikder, member (vat policy) of the NBR, said, "We will not extend the time anymore for online VAT registration. Traders will not be allowed to run their businesses without an e-BIN after November 30."
If any business does not get an e-BIN within the deadline, it will have to apply for one as a new business entity, he added.
The new VAT law came into effect from July 1 this year with an aim to bring in automation for VAT services.
In order to scrap the old BIN, the NBR had first given three months to business entities to get a new e-BIN.
As most businesses did not get an e-BIN, the NBR extended the deadline twice for online VAT registration. And the last deadline was fixed for November 30.
The NBR is also promoting the use of VAT software – one is an electric fiscal device and another is sale data controller – in order to curb tax evasion.
The use of both software will be made mandatory from January 2020.
Keeping VAT automation in focus, the NBR has set a target to collect Tk1,17.671 crore in VAT in the 2019-20 fiscal year, which is 37 percent more than the target in the previous fiscal year.