In order to fix the irregularities in VAT dodging in the import-export field, The National Board of Revenue (NBR) wants businesses to collect 13-digit business identification numbers (BIN).
Authorities concerned now want the traders to collect the 13-digit BIN within the next 15 days or else businesses will not be able to run their day to day activities in a proper manner.
Reportedly, several business formations have been running their businesses, including trade, import and export with invalid BIN for a long period of time and this has augmented the risk of VAT evasion and other irregularities.
Necessary measures should be taken
to stop accepting VAT returns of
businesses who are using the old BINs
Many businesses have also been taking advantage and filing the monthly VAT returns by using invalid BINs. They are doing this by taking advantage of the option of manual VAT returns submission. Hence, the 13-digit BIN which are also known as e-BINs should now be made mandatory for all types of business formations.
Necessary measures should be taken to stop accepting VAT returns of businesses who are using the old BINs. The 15-day time frame can be considered by NBR to extend the deadline for traders to update their existing business into online-generated 13-digit ones.
The e-system should also be maintained constantly so that the vested quarters do not get the opportunity to provide false information in the 13-digit BINs and stern actions should be taken against those who does such thing.