Star Business Report

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The National Board of Revenue (NBR) in a notification yesterday explained how it would provide refunds of value added tax (VAT) paid in excess by businesses.

Refund claims of less than Tk 50,000 will be adjusted with VAT payable by firms in the following months. In cases where an adjustment is not possible, the NBR field offices will provide a refund.

If the refund amount is Tk 50,000 or above, the reimbursements would take place through bank accounts of applicants.

Businesses seeking refunds will have to submit VAT returns regularly and refunds will be provided after deduction of arrear VAT, stated the notification issued by the NBR’s VAT policy wing.

The notification comes amid complexities in the field offices over providing the refunds.

The issue arose after the NBR slapped a 5 per cent advance tax (AT) on import of goods other than capital machinery and spare parts starting this fiscal year.