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Over 90pc businesses risk losing BINs

VAT reg update


Doulot Akter Mala | Published: August 16, 2019 10:36:42 | Updated: August 17, 2019 10:04:44


Representational image

Some 150,000 businesses accounting for over 90 per cent risk losing identification numbers for the non-compliance with the revenue board's directive to update their VAT registration information within the deadline.

The deadline for updating the Business Identification Numbers (BINs) by the VAT registered businesses passed on Wednesday.

Officials said businesses would be allowed to activate their BIN again by updating the information and getting access to the VAT online system.

Many VAT-registered businesses could not get access for a few days to the VAT online system due to technical glitch, they said.

Officials said of 166,000 businesses, some 10,000-15,000 enterprises have updated their registration information within the deadline since the new VAT and Supplementary Duty Act-2012 was enforced from July 1, 2019.

Last month, the National Board of Revenue (NBR) issued a directive and a notice to all businesses  for updating their registration information entering the VAT online site.

Businesses will have to sign-up again on the site of electronic BIN (e-BIN) and fill out the VAT 2.1 form according to new VAT law and rules.

BIN is mandatory for all the major business activities including export-import.

The instruction came after the VAT officials detected around 100,000 BIN holders furnished fake information in their VAT registration form to avail "undue" benefits.

The first deadline for updating the information was July 31, 2019. Following poor response, the NBR extended the deadline to August 14, 2019.

Talking to the FE, VAT Online Project director Syed Mushfequr Rahman said businesses may face difficulties to conduct their export and import unless they update their BIN.

"Although the deadline expires, the option for updating BIN will remain open for the businesses," he said.

He said there were a huge number of fake BIN holders in the VAT registration database who may have refrained from updating their information.

"We would deactivate the BIN now, but businesses are welcomed to update their information and activate their BIN again," he added.

Those who have already responded to the NBR and updated the BIN may be the actual genuine businesses, who are VAT registered, he added.

According to the data, a total of 166,000 businesses have obtained electronic BINs out of 840,000 old BIN holders.

Of the BIN holders, fewer than 32,000 businesses submit their VAT returns regularly.

Last year, the NBR introduced instant BIN issuance system to expedite the VAT registration system.

However, a vested quarter has taken undue advantage of the instant BIN, which the NBR issued without verification.

Some commercial importers have intentionally abused the e-BIN obtaining tax benefit as manufacturers from different customs port.

To check the abuse of the instant BINs, the NBR has sought some additional information with the VAT registration, which includes branch information, input-output data, names of major capital machinery and names of directors and owners.

Abdus Salam, a leader of the Bangladesh Chemical Association, said they are still unaware of updating the BIN information and its deadline.

He said many shops are still closed due to Eid holidays and they might comply with the NBR order after the holiday.

doulot_akter@yahoo.com

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