Home Corporate VAT return increased by 12 lakhs in a year
Corporate - March 28, 2023

VAT return increased by 12 lakhs in a year

Staff Correspondent: The number of new Business Identification Numbers (BINs) is constantly increasing. Also, the number of VAT return submissions is increasing. Mainly due to increase in awareness among traders, both registrations and returns are increasing. Compared to 2019-20 fiscal year, 2021-22 fiscal year, the number of registered business establishments has increased by 1 lakh 72 thousand 756. In other words, the growth in registration is 192 percent. And compared to 2019-20 fiscal year, 2021-22 fiscal year return submission has increased by 12 lakh 10 thousand 766.
That is, the return growth is 3 thousand 294 percent. Again, in the tax year 2021-22, where income tax return was filed 25 lakh 48 thousand, there was tax return filed 3 million 41 thousand. However, there is a huge gap between the number of e-TINs and BINs registered.
On the other hand, the number of BIN users is constantly increasing. Currently 30 Scheduled Banks use or verify BIN information. Basically, the bank verifies the BIN information in case of payment of VAT through A-challan.
In case of import-export, the customs authority verifies the BIN information of the organization in Asycuda World. Besides, Bangladesh Investment Development Authority (BIDA), Bond Automation, Bangladesh Hi-Tech Park Authority and field level VAT officials verify and use BIN information. According to the calculations, currently the number of organizations registered by VAT is 4 lakh 23 thousand 570. But BIN information is being verified and used about six lakh times every month.
However, the integration of other service organizations including IRC, ERC, City Corporation with the BIN server is increasing. BIN verification and users are increasing. Officials believe that as a result, the opportunity for traders to hide or conceal any information is being limited.
According to the data of NBR, the number of institutions registered in the last fiscal year 2021-22 was 360 thousand 507. There were two lakh 81 thousand 123 institutions registered in the financial year 2020-21. That is, the number of registered institutions increased by 79 thousand 384 in the last financial year. 3040,574 VAT returns have been filed for the fiscal year 2021-22. Registered companies are required to file VAT returns every month. Accordingly, an average of two lakh 53 thousand 381 returns have been filed every month.
Again 18 lakh 29 thousand 808 VAT returns have been submitted for the fiscal year 2020-21. As a result, 2021-22 fiscal year VAT return has increased by 12 lakh 10 thousand 766.
On the other hand, the number of VAT registered institutions in the financial year 2019-20 was 1 lakh 87 thousand 751. Out of this, 92 thousand 290 returns have been filed. Compared to the fiscal year 2019-20, the registration in the fiscal year 2021-22 has increased by 1 lakh 72 thousand 756.
The growth has been 192 percent. In addition, 2019-20 fiscal year VAT returns have been filed 92 thousand 290. And 2021-22 financial year returns have been submitted 3 million 40 thousand 574. That is, the return has increased by 29 lakh 48 thousand 284. The return growth has been 3294 percent.
According to VAT Online, tax-related information is becoming increasingly important for businesses today. That’s why the number of BIN information verification and users is constantly increasing.
And as a result of integration with various organizations, the use and verification of information is becoming easier. Currently around one and a half lakh BINs are verified every month for A-challan verification. Basically, scheduled banks verify this information. Apart from this, 370,000 monthly VAT return submissions, 100,000 online system, 100,000 BINs are verified with new registrations. About 1,800 user IDs have been given to VAT and customs officials. Every day someone logins.
In total, VAT Online officials said that they verify and use the information of about six lakh BINs every month. According to sources, there is integration with e-TIN server along with VAT Online or BIN. As a result, e-TIN users can verify the BIN information of a company. Besides, the BIN server is linked to Asycuda World, Bond Automation, BIDA and Hitech Park. 30 schedule banks can verify data from BIN servers.
Especially banks accepting A-challan can verify the BIN information. The process of future integration of IRC, ERC, RJSC, City Corporation with BIN server is ongoing. As a result, no trader or business organization will have the opportunity to hide any information or data related to business.
In this regard, a member of NBR (VAT) told that the use of BIN information is increasing. Integration with IRC, ERC, City Corporation is being attempted. Efforts are being made to introduce the return filing system through the app, so that returns can be filed more easily. 70 percent BIN National Identity Card (NID) information has been updated. NID information of remaining 30 percent institutions is being updated. As a result, no organization can hide business information at will.
According to NBR’s Research and Statistics Division, currently registered e-TINs are around 80 lakh. Among them, about 2.4 lakh (up to November 30) filed income tax returns (returns) of individual taxpayers for the outgoing tax year 2022-23. And in the fiscal year 2021-22, the total number of return submissions was 25 lakh 48 thousand. And the number of VAT registered institutions is 4 lakh 23 thousand 570. Out of this, 3 million 40 thousand 574 VAT returns have been filed in the fiscal year 2021-22.

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