Social media giant Facebook has obtained VAT registrations from the National Board of Revenue (NBR) on Sunday complying with the government’s law to operate as a registered taxpayer.
From now on, the three entities of the company will have to submit VAT returns regularly and pay VAT.
The company has obtained three separate Business Identification Numbers (BIN) for its three entities.
The Dhaka South VAT zone has issued the BIN to Facebook Technologies Ireland Ltd, Facebook Ireland Ltd, and Facebook Payments International Ltd.
PricewaterhouseCoopers will work as VAT consultant of the company while a local Chartered Accountant Firm has been appointed as its VAT agent.
PwC sources said Facebook will file its first VAT returns within July 15 next.
Recently, other two non-resident companies Google and Amazon obtained VAT registrations from NBR.
The companies will have to pay VAT at a rate of 15 per cent on their revenue derived from Bangladesh.
However, the nonresident companies are currently paying VAT on their revenue as banks deduct the tax at the time of repatriation to their parent company.
VAT officials said they are unable to determine the actual payable VAT of the non-resident companies due to the absence of VAT returns where their financial transactions have to be furnished in detail.
The government made VAT registration and submission of VAT returns mandatory on July 1, 2019, for non-resident companies.
However, the companies were facing problems to comply with the law during the last two years due to flaws in laws.
In different phrases, the NBR with the help of the PwC and Ernst&Young representatives removed the complexities in the law through amendments.