Microsoft gets VAT registrationadmin2019
Microsoft received the Value-Added Tax (VAT) registration from Dhaka South Vat commissionerate on July 01 standing as the fourth tech giant in Bangladesh. It used its Singapore address and collected its Business Identification number.
It’s obvious that if the International companies want to conduct business here in Bangladesh, they will have to pay taxes to the government. So, these technology companies like Facebook, YouTube, Google, and Microsoft were required to register for Vat and set up offices in Bangladesh or hire Vat agents, according to the Value Added Tax and Supplementary Duty Act 2012.
There was a demand from them to pay the Vat directly due to many complications in hiring local agents. They were complaining about the difficulties since 2019. So, NBR amended the Vat Act to provide direct Vat benefits to companies. NBR sources said, from that time they would not be able to conduct business without the Vat registration.
In accordance with that Google and Amazon, YouTube and Facebook had taken up a BIN number in Bangladesh to avail the Vat-related services including Vat payment and Vat return submissions. Most recently, Microsoft received its BIN and Vat registration on July 01.
This news was confirmed by Pramila Sarkar to the Business Standard who is the Additional Commissioner, Customs, Excise and Vat Commissionerate Dhaka South. According to her information, a Bangladeshi Chartered Accountant firm will be acting as its legal consultant.
Microsoft will now be operating its business in the name of Microsoft regional Sales PTE Limited and will pay 15% vat on revenue derived from Bangladesh.
SM Humayun Kabir, Vat Commissionerate of Dhaka South is hopeful that from now on they will get a clear picture of how much revenue they are getting from these global technology companies.
Pic and Article Source: https://www.tbsnews.net/economy/microsoft-gets-vat-registration-269101