11-digit BINs become invalid today
The validity of the manually issued BINs had been extended thrice
NBR launched e-BIN in March last year
Until June 28, some 112,199 businesses have registered for e-BINs
The NBR's VAT collection target is set at Tk 110,543 crore for 2018-19, up by 32% from last fiscal year's revised target
Individuals and companies will have to use the electronically generated business identification numbers (BINs) from today as the validity of the manually issued BINs expired yesterday.
The revenue authority launched the new 9-digit e-BINs in March last year in a bid to implement the VAT and Supplementary Duty Act 2012 through digitisation of the VAT (value-added tax) system.
The validity of the old 11-digit BINs had been extended thrice, said Md Rezaul Hasan, member for VAT policy at the NBR.
The time extension was given as it was tough for firms to get one BIN centrally instead of separate BINs for every branch under the VAT law 1991, he said.
The BINs are needed to take part in export and imports, tender, getting loans from banks or supplying goods and services to other entities.
“This is one step forward toward automation,” said Hasan, who is also in-charge of NBR's Tk 690 crore VAT Online Project.
He said most of the business entities have already registered for e-BINs, which are provided within 24-48 hours of being applied for online registration.
Until June 28, some 112,199 businesses have registered for e-BINs and 11,832 firms signed up for turnover tax.
The related provision of central registration for companies has been included in the existing law to facilitate use of e-BINs. That's why, deadline for use of 11-digit BINs has not been extended, he said.
Hasan said the NBR will start piloting online submission of VAT returns at the Large Taxpayers' Unit VAT from this fiscal year beginning today.
The revenue authority brought amendments in VAT rules 1991 in the Finance Act passed on June 27, 2018.
In his budget speech, Finance Minister AMA Muhith said online tax return facility shall be made available to all taxpayers after proper refinement of the online return submission system.
In addition, the traditional manual system for filing returns shall also be continued for the taxpayers who do not have access to online facilities, he said.
Borne by consumers, VAT—an indirect tax—accounted for 37 percent of the total revenue collection followed by income tax and customs.
The VAT collection target for the NBR has been raised by 32 percent to Tk 110,543 crore for 2018-19 from the revised target of last fiscal year.