Google pays Tk 2.29cr VAT to NBR

Global tech giant Google has paid around Taka 2.29 crore as Value Added Tax (VAT) directly to the National Board of Revenue.

It has paid VAT of Taka 55,77,704 for the month of May and Taka 1,73,76,832 for June, said SM Humayun Kabir, commissioner of VAT Commissionerate, Dhaka South.

In the past, banks used to deduct VAT during payment by service recipients to Google. Now Google is depositing the indirect tax to state coffer separately, Kabir said.

He said following VAT return from Google, it will be easier for that company to become more compliant. Side by side, Kabir said it would also be easier to scrutinize their all transaction related data and information.

The American multinational company got VAT registration from the revenue authority in the middle of May this year, ending a two-year stalemate over the issue.

Earlier in last month, social media Facebook paid a VAT of Taka 2.44 crore to the state coffer.

In July 2019, the NBR slapped conditions for tech giants to either set up offices in Bangladesh or appoint agents so that the government can collect VAT on the advertisements and other services provided by them to local firms.

Early last year, the NBR decided to allow tech giants to get direct VAT registration without opening local offices in order to bring them under the tax network.

This time, a Singapore branch of Citibank NA remitted the VAT amount to the account of the NBR on behalf of Google Asia Pacific Pte, also based in Singapore.

PwC Bangladesh will work as local consultant to Google Asia Pacific in Bangladesh.

Source: BSS