NBR to engage more IT firms to develop VAT software

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NBR to engage more IT firms to develop VAT software
« on: February 26, 2020, 09:21:21 AM »
Currently, there have been only 11 firms, which are eligible for developing the software and approved by the NBR

The National Board of Revenue (NBR) is going to engage more IT firms in developing software for businesses to help them maintain accounts and keep records of value-added tax (VAT).

Currently, there have been only 11 firms, which are eligible for developing the software and approved by the NBR.

The revenue regulator took the initiative in a bid to expedite implementation new the Value Added Tax and Supplementary Duty Act, 2012

Speaking as chief guest at a workshop titled “Awareness Raising on Value Added Tax and Supplementary Duty Act-2012” NBR Chairman Mosharraf Hossain Bhuiyan came up with the announcement in the capital yesterday.     

“It is quite impossible to provide services for the huge number of businesses under VAT coverage with only 11 listed software developing companies,” Mosharraf Hossain Bhuiyan said.

Considering the number of businesses, the NBR decided to increase the number of companies to ensure quicker implementation of new VAT law, said the NBR chair.

The NBR would issue a circular within two or three days to add more companies to existing lists, he added.

As per the direction of the NBR, these companies will be allowed to develop software for businesses to help maintain accounts and keep digital records of VAT. The software will also connect the business firms with the NBR automatically.

Mosharraf urged the country’s eligible software companies to apply to be listed with the NBR for the job.

Earlier on February, the NBR authorized 11 companies —UY Systems, Ennova Technologies, Dhrupadi Techno Consortium, Symphony Softtech, UniSoft Systems, Mediasoft Data Systems, Best Business Bond, CSL Software Resources, Allied Information Technology, Jubosoft Information Systems and Divine IT — as eligible for the software development.

Businesses like medium firms or manufacturing companies with more than Tk5crore annual turnover were asked to use the software, said an NBR circular published last year.

However, the directive was not implemented then as the NBR delayed for authorizing the companies.

Meanwhile, as part of the ‘VAT and supplementary duty act 2012’ implementation, the revenue board on June 13 this year issued an order and mentioned the details about the software and the eligibility of the software producing companies.

Who can apply?

The recent order of the NBR mentioned four eligibilities for the aspirants who want to produce such software.

The aspirant company must have registration from Register of Joint Stock Companies and Firms Office as public or private limited company.

The company must have five-year experience of running the business uninterruptedly and must have experience of post-sale services.

Besides, the aspirant needs to have experience in accounting or similar software making, which has been successfully set up in at least three medium or large business firms.

Also, the company has to manage all for examining the software by the revenue board.

How will authorization be carried out?

Aspirant will apply to VAT Commissioner concerned. Then, he will initially check the software and send it to a NBR member, who is responsible for VAT implementation and IT. The member, after his observation, will send it to authorizing committee comprised of five members and headed by the convener, commissioner (VAT) of the large taxpayer unit. The committee will provide the final approval.
Md. Arif Hassan
Assistant Professor
Department of Business Administration
Faculty of Business and Economics
Daffodil International University