‘Keep VAT invoice for five years’

National Board of Revenue (NBR) asked the industry owners to keep their VAT invoice copies for at least five years to prevent VAT dodging. NBR issued a circular in this regard on Wednesday.

NBR Chairman Md Mosharraf Hossain Bhuiyan asked the industry owners to keep the VAT invoice, otherwise, strict measures will be taken against them, reports BSS.

“Many industrial enterprises do not issue VAT invoices when they deliver their goods from the factory. Some companies issue invoices while delivering goods or services, but do not preserve them. With this malpractice, the government loses huge amounts of VAT,” he added.

NBR Chairman said it is strictly directed to comply with the provision of detaining the goods without transporting the VAT invoice.

As per the circular, the company will have to issue a VAT invoice while delivering the product or service. In accordance with Article 5 of the Value Added Tax and Supplementary Customs Act, 2012, the buyer has to give the invoice in the form of tax invoice.

In the tax invoice, the company or person to whom the goods are to be sold should give details of the registered person’s name, BIN number, address of the company, date and product description.

The company that sells the product will have to issue two copies of the same tax invoice. Of these, the original invoice must be provided to the buyer and the other invoice must be kept for at least five years for the VAT registered company.

On the other hand, in case of transfer of goods or services from one unit of a centrally registered company to another, it will be issued. But in case of delivery of goods to the consumer, the VAT invoice must be issued in case of supply of goods.