NBR launches online system for direct VAT refunds

The National Board of Revenue (NBR) today launched an e-refund system for value-added tax (VAT), allowing refunds to be transferred directly to taxpayers' bank accounts.

NBR Chairman Md Abdur Rahman Khan inaugurated the system at the NBR headquarters in Dhaka by transferring Tk 45.35 lakh to the bank accounts of three taxpayers from three VAT commissionerates in Dhaka through the digital platform.

Khan said the system would significantly reduce delays, discretion and administrative bottlenecks that have historically plagued the VAT refund process.

Under the new system, approved VAT refunds will be credited automatically to taxpayers' designated bank accounts, eliminating the need for physical visits to VAT offices.

The facility has been introduced through a refund module added to the e-VAT system, which has been integrated with the Finance Division's iBAS++ platform and the Bangladesh Bank's BEFTN (Bangladesh Electronic Fund Transfer Network).

Taxpayers can apply for refunds online through their monthly VAT returns submitted via the e-VAT system.

Once the relevant VAT Commissionerate verifies and processes the application, the refundable amount will be transferred directly to the taxpayer's bank account.

The NBR has so far received 115 VAT refund applications, of which three businesses have received refunds. The remaining applicants will receive their refunds gradually, he said.

The NBR chairman said the revenue authority has around Tk 4,000 crore in outstanding refund liabilities across taxes and VAT.

"We have launched the VAT refund system today, and the tax refund process will begin soon," he added.

"With this system in place, refund applications can now be processed in a fully transparent and time-efficient manner," Khan said.

He also said that taxpayers would no longer need to repeatedly visit VAT offices to follow up on their claims, and the NBR plans to make VAT registration mandatory from next year.