NBR to sue Paperfly for VAT evasion

The VAT Intelligence is taking preparations to sue logistics service provider Paperfly on allegations of value-added tax (VAT) evasion.

The field office of the National Board of Revenue (NBR) said it found through primary probe that the logistics firm did not deposit the indirect tax on Tk 5.77 crore collected as charge from delivery of goods in November and December. 

A 15 per cent VAT is payable on the amount, said Moinul Khan, director general of VAT Audit, Intelligence and Investigation Directorate (VATAIID), in a press release.

The NBR's field office said Paperfly got VAT registration as an online courier service and it has 87 delivery centres across the country. The firm delivers goods to customers who buy from online marketplaces.

As per rule, firms are required to deposit VAT of a month within 15 days of the next month, but the company did not do so, according to the VATAIID.

Contacted, Paperfly's Chief Marketing Officer Rahath Ahmed said the company followed regulations in terms of VAT and other guidelines and paid the dues regularly.

He said the Paperfly team was already in discussion with the VAT office to understand further about the issue of unpaid VAT.

"There has been no case filed or any demand placed to us and we are confident that we shall be able to prove our points," he said in emailed reply.

Last month, Indian e-commerce logistics solution provider Ecom Express acquired a majority stake in Paperfly spending around Tk 100 crore.