Sun, Jun 16, 2019 5:51 AM
Thu, May 30, 2019 3:03

FB, Google, Youtube must be VAT registered from July 1


To run business in Bangladesh, internet giants such as Facebook, Google, Youtube, and other digital platforms have to file VAT registration once the new Value Added Tax (VAT) law comes into force from July 1.


To run business in Bangladesh, internet giants such as Facebook, Google, Youtube, and other digital platforms have to file VAT registration once the new Value Added Tax (VAT) law comes into force from July 1.

The National Board of Revenue (NBR) has taken the move with the aim of collecting untaxed money from the online-based advertising which is being siphoned off from the economy.

So, the companies have to either set up offices in Bangladesh or appoint agents to pay VAT for running advertisements and other businesses in Bangladesh said, officials.

 NBR’s VAT Online Project Director Syed Mushfikur Rahman said the government does not get mentionable VAT from the most popular social networking site Facebook, video streaming site Youtube, search engine giant Google and other digital platforms.

“Actually, these sites and platforms have no offices or agents in Bangladesh, but now they have to do business complying with the local law,” he said.

NBR officials said as per the section 19 of the “value added tax and supplementary duty act 2012” companies like Facebook, Google and Youtube has to go for VAT registration and pay VAT through local offices or agents.

However, the NBR has no data regarding business volume of these companies as the lion’s share of the money is being channeled through unauthorized ways.

E-Commerce Association of Bangladesh (e-CAB) General Secretary Muhammad Abdul Wahed Tomal told BSS today that in Bangladesh there are over 50,000 facebook pages which are running e-commerce business.

“But unfortunately, we have no data about them as they are not associated with e-cab,” he said, revealing that e-CAB has 950 members at present.

Replying to a query, Tomal said generally, over 25,000 to 30,000 parcels are delivered daily and the rises to 40,000 to 45,000 ahead of Eid or other occasions and the e-commerce market turnover is Taka 800 to 1,000 crore annually.

Industry people said major e-commerce organizations spend $8-10,000 monthly for digital marketing which means it goes up to $ 100,000 annually.

The e-cab general secretary said f-commerce or facebook-based e-commerce businesses spend at least $5-10 every day boosting their advertisements.

Market insiders said companies like Facebook and Google and its subsidiary YouTube receive huge amounts of advertisement revenue from Bangladesh annually but the companies are not registered in the country.

As they have no VAT registration in Bangladesh, they said, there are no estimates of how much money is being siphoned abroad for the purpose of advertisement in these sites and platforms.

Moreover, telecom companies and other big corporate organizations are also leaning towards digital advertisement as well.

Muhammad Abdul Wahed Tomal laid emphasis on the necessity of legal channels for advertisement and other businesses on Facebook, Google, Youtube and other digital platforms.

why it is called ‘liquid gold’ Irate passengers vandalize train in Cumilla Man held for ‘rape attempt’ on Sirajganj minor girl Schoolboy killed in Jhenaidah road crash Mexico publishes Trump's 'secret deal' on migration 298 killed in accidents during Eid: Report Mystery behind Malibagh cocktail attack on police to be unearthed soon: DMP Chief brazil booed by fans as they start copa America with win against Bolivia ‘This not a budget for people’ Varun Dhawan and Anushka Sharma’s Sui Dhaaga is headed to the Shanghai International Film Festival ‘Unfortunate killings are taking place across border’ Extra budget to rejig Madrasah education FBCCI welcomes black money whitening in budget Drug trader killed in Teknaf gunfight Sri Lanka bowl first against Australia Hong Kong leader suspends controversial extradition bill Stay equipped with modern technologies, PM asks SSF ‘Ashar’ brings blessing rain ‘If not resolved, Rohingya crisis may destabilize region’ Gold prices increase per bhori Tk1,167 Use high-tech to stay hydrated this summer season Online shopping getting costlier for VAT slap People will reject proposed budget: BNP Lightning kills 4 including schoolgirl in Pabna Taylor Swift announce her 7th album UK court sets Assange US extradition hearing for February 2020 Government targets to raise GDP growth to 10pc in 2023-24 FY: PM Che’s 91st birth anniversary today Salman Khan’s film yet to cross Rs 200 cr mark President seeks Tajikistan’s support to end Rohingya crisis