Businesses that have failed to file value-added tax (VAT) returns of March and April 2020 because of the countrywide shutdown will be able to file the returns within June 9 without incurring any penalty, said the National Board of Revenue (NBR) today.
The revenue authority's move followed within a week of the government issuing an ordinance that the NBR would be able to extend the deadline for submission of VAT returns without penalty and interest in the case of a natural disaster, pandemic or war.
The ordinance became effective retroactively from April 1, six days after the government-enforced countrywide shutdown to slow the spread of the virus that has shattered the economic and social lives of people around the globe.
Save for essential commodity processors and marketers, drug manufacturers, pharmacies, superstores, groceries and banks, most businesses have remained shut.
While the NBR kept its field offices of VAT open in April and May to receive VAT returns, the majority of the businesses could not file returns on time because of the adverse environment.
They became defaulters as a result and in normal times would have to pay a fine of Tk 10,000 and 2 percent simple interest on a monthly basis on the payable VAT amount.
The rules make it mandatory for businesses to submit details of their transactions of the previous month and deposit VAT within the 15th of the following month.
They can also seek an extension for delayed submission but would then have to pay two percent simple interest monthly on the payable VAT amount.
Now, the NBR says it will not impose any penalty and interest for the failure to submit VAT returns of the months of March and April 2020 if firms file transaction reports by June 9.