Facebook will file its first VAT returns within July 15 next as the media giant has taken Business Identification Number (BIN) on Sunday for complying with the government’s law to operate as a registered taxpayer.
PricewaterhouseCoopers will work as VAT consultant of the company while a local Chartered Accountancy Firm has been appointed as its VAT agent, said an official of PricewaterhouseCoopers.
PricewaterhouseCoopers is a multinational professional services network of firms, operating as partnerships under the PwC brand. PwC ranks as the second-largest professional services network in the world and is considered as one of the Big Four accounting firms, along with Deloitte, EY and KPMG.
The Facebook has obtained three separate BINs for its three entities registrations in terms of online application. The social media giant has obtained three separate BINs to get direct VAT related services including VAT payment and VAT return submission.
"We believe, how we work is more important than where we work," Facebook authorities said while sharing an update to its remote work policy.
The Dhaka South VAT zone has issued the BINs to Facebook Technologies Ireland Ltd, Facebook Ireland Ltd, and Facebook Payments International Ltd.
The companies will have to pay VAT at the rate of 15 per cent on their revenue derived from Bangladesh.
Recently, other two non-resident companies Google and Amazon also obtained VAT registration from NBR.
However, the non-resident companies are currently paying VAT on their revenue as banks deduct the tax at the time of repatriation to their parent company.
VAT officials said they are unable to determine the actual payable VAT of the non-resident companies due to the absence of VAT returns where their financial transactions have to be furnished in detail.
The government made VAT registration and submission of VAT returns mandatory on July 1, 2019, for non-resident companies.
According to the ‘Value Added Tax and Supplementary Duty Act, 2012’, companies like Facebook, YouTube, Google have to take VAT registration and set up an office in Bangladesh or hire a VAT agent. Later, in early 2020, the NBR decided to bring it under a separate VAT registration number.
However, the companies were facing problems to comply with the law during the last two years due to flaws in laws.
In different phrases, the NBR with the help of the PwC and Ernst & Young representatives removed the complexities in the law through amendments.
Ernst & Young Global Limited, commonly known as Ernst & Young or simply EY, is a multinational professional services network with headquarters in London, England. EY is one of the largest professional services networks in the world