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The government has abolished the facility for businesses to file VAT returns and pay taxes on a quarterly basis. Consequently, businesses must revert to the previous system of filing VAT returns and paying their due VAT monthly.
This amendment received approval at a cabinet meeting held on Monday, September 28. The Prime Minister’s Office confirmed this information via a press release.
The opportunity for businesses to file VAT returns every three months was introduced in the current fiscal year’s budget. However, the National Board of Revenue (NBR) subsequently reported that the pace of VAT collection had decreased by approximately 20% after the implementation of this system. To normalize revenue collection, the NBR recommended reverting to the former method.
According to relevant NBR officials, following the cabinet’s approval, VAT returns must now be filed and payable VAT settled within 15 days of the end of each tax period.
Previously, businesses were allowed to submit returns within a maximum of 15 days after three tax periods (or quarters). The new decision revokes that provision, thereby reinstating the earlier rule of filing returns within 15 days of the end of each month or tax period.