FB, Google, Youtube must be VAT registered
IT Live: To run business in Bangladesh, the 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, reports BSS.
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.
Talking to BSS, 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. “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.
As they are 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.
Dhaka, 29 May (campuslive24.com)//MIH