Google to pay Tk 22.9m VAT in Bangladesh

Tech behemoth Google has deposited Tk 22.9 million in a bank to pay value added tax (VAT) in Bangladesh for the first time.

Senior Correspondentbdnews24.com
Published : 5 August 2021, 02:30 PM
Updated : 5 August 2021, 02:30 PM

However, the money could not be transferred to the national exchequer on Thursday as the bank had closed by the time all the formalities, including the filing of the VAT return with the National Board of Revenue, were completed, according to  Additional Commissioner Pramila Sarkar of Dhaka South Customs, Excise and VAT Commissionerate

Alphabet Inc's Google is the second non-resident organisation to pay VAT after social media giant Facebook. Apart from them, Microsoft has also registered to pay VAT for doing business in Bangladesh without having its own office in the country.

These companies are registered under the Dhaka South Customs, Excise and VAT Commissionerate.

Pramila said the money paid as VAT on Google's revenues for May and June would be deposited to the NBR's coffers on the next banking day.

"On Thursday, Google's representative in Bangladesh, PricewaterhouseCoopers, came to file the VAT returns for May and June."

"But it took a while to complete the necessary work. The bank was closed by the time it was done so they could not file the returns today. ”

Google has deposited Tk 5.6 million for the month of May and Tk 17.3 million for June, according to Pramila.

"The company is paying a fine of Tk 10,000 for failing to submit the return for May on time. However, it has not been penalised for the month of June as it had applied for a time extension (to make the filling)," she said.