The National Bureau for Revenue (NBR) conducted 204 inspection visits last month, it has been revealed, in a purge on Value Added Tax (VAT) evaders and other tax dodgers.
The campaigns, which covered the local markets, resulted in identifying violations and administrative fines were imposed on several entities in accordance with the VAT and Excise Law.
This was in addition to other offences, such as VAT and excise evasion, that resulted in the closure of some outlets.
The NBR yesterday warned it will take legal action against violating businesses and refer those who are proven to have committed one of the tax evasion crimes to the authorities concerned to initiate criminal action against them.
The law stipulates offenders could face five years in jail and a fine equivalent to three times the amount of VAT due, or imprisonment for one year and a fine equivalent to double the evaded excise tax.
“These campaigns were organised as a part of NBR’s ongoing oversight efforts to protect consumer rights and enhance the level of business compliance, to ensure the effective implementation of VAT and excise,” stated the NBR.
The campaigns include the implementation of the Digital Stamps Scheme on cigarettes to guarantee that businesses are aware of the scheme and the mandatory presence of digital stamps on all cigarette products available in the local markets.
The government watchdog expanded the scheme last year to include water pipe tobacco ‘molasses’ products.
The scheme aims to track excise goods from the manufacturing stage up to consumption through digital stamps, which will protect consumers against the circulation of counterfeit or illegal goods.
The first phase of the scheme went into effect on cigarette products on March 11, 2022, allowing the registered importers and manufacturers to place digital stamp orders via an electronic system.
Meanwhile, the NBR yesterday also confirmed the continuation of inspection campaigns to urge all businesses registered with it to abide by the law.
It is also to ensure that the price of the goods and services shown is inclusive of VAT, and ensure that the VAT registration certificate is displayed in a visible place in the establishment.
The bureau has confirmed that all the companies, establishments and individuals whose annual turnover exceeds BD37,500 should be registered for VAT purposes to avoid legal actions. And, businesses must file their VAT returns and payments by October 1.
According to NBR data for Q2 2023, there are more than 22,815 registered VAT payers and over 1,010 stores registered for tourists’ refunds.
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