NBR launches e-VAT module for paper-based returns

The National Board of Revenue (NBR) has taken a step towards fully digitising the country's VAT administration by introducing a new initiative that allows taxpayers to bring all previously submitted paper-based VAT returns under the e-VAT system.

It has added a sub-module titled "Hard Copy Return Entry" to the e-VAT platform, enabling taxpayers to directly enter their past hard copy monthly returns into the online system.

The revenue authority issued a circular to this end on Monday outlining the operational procedures of the newly added sub-module.

Taxpayers who had earlier submitted VAT returns in paper form can now upload and store those returns in the e-VAT system themselves, following the instructions in the circular.

The measure is expected to reduce administrative bottlenecks, minimise errors, and make compliance easier for thousands of VAT payers nationwide.

Currently, paper returns are entered into the e-VAT system by the Central Processing Centre (CPC) of the respective VAT commissionerates.

In this manual process, officials input data from hard copy returns, which often creates complications in assigning responsibility for errors and increases the workload of VAT offices.

Manual entry of large volumes of returns is also time-consuming, delaying updates in the e-VAT system. As a result, many taxpayers have faced automatic imposition of interest and penalties, despite submitting their returns on time.

In some cases, taxpayers were unable to file online VAT returns as the system does not permit submission without clearing the imposed penalties.

The NBR said the new Hard Copy Return Entry sub-module is designed to resolve these long-standing issues.

Taxpayers who submitted paper returns within the legally prescribed time under Section 64 of the VAT and Supplementary Duty Act, 2012, can now enter those returns into the e-VAT system without incurring any interest or penalty.

Eligible taxpayers will receive notifications via email and mobile phone with a link to the e-VAT system, allowing them to use the sub-module and complete the data entry themselves.

The NBR set a deadline of March 31, 2026, for uploading all previously submitted paper returns without any penalty or interest.

Once historical returns are fully uploaded, taxpayers will be able to submit all future VAT returns online without interruption.

The revenue authority said the initiative is part of its broader effort to digitise tax administration, improve transparency, and ensure greater accountability in the VAT system.

The NBR also urged taxpayers to cooperate fully to make the transition smooth and effective.