Facebook starts paying VAT
The National Board of Revenue's (NBR) efforts to create Facebook fall consistent with local regulations have started to pay back as the global social media giant handed about Tk 1.7 crore in value-added tax for the months of July and August.
Facebook's authorised sales partner Httpool has paid the VAT to the state coffer.
In addition, it solved the mystery of just how much Facebook earns from Bangladeshi companies, which are actually increasingly counting on digital platforms for advertisements.
In August, the Facebook agent sold advertisements worth Tk 6.23 crore to various local organisations.
In exchange, they paid Tk 91.39 lakh in VAT. As per the rules, the NBR gets 15 % in VAT and another 4 % in advance income tax.
"It's a significant advancement in VAT collection as a worldwide tech company like Facebook came beneath the tax net," Moinul Khan, director general of VAT Intelligence, told The Daily Star yesterday.
According to Khan, Facebook completed VAT registration a few months earlier and it came beneath the VAT law from the start of the fiscal in July.
Earlier, the NBR discovered that digital ad agency Httpool didn't pay any VAT for July, despite obtaining advertisements worth over Tk 5 crore from different companies.
In August, the VAT Audit, Intelligence and Investigation Directorate (VATAIID) beneath the NBR filed a case against Httpool Bangladesh for non-payment of VAT and for not operating from the address it had used while obtaining VAT registration.
Later, Httpool paid Tk 77.62 lakh VAT for July in late August and Tk 1.55 lakh as fine, said Khan.
"Now Facebook is complying with the rule. It even cleared the August's payment prior to the deadline."
According to the rules, companies should clear VAT of per month by the 15th day of another month.
The NBR can be trying to gather VAT from another tech giant Google.
"We are touching the Bangladesh Telecommunication Regulatory Commission in order that Google comes under the VAT law properly," Khan added.
Facebook, in June, announced that it appointed Httpool as its authorised sales partner to provide support and market expertise to local businesses and agencies and offer the option for local currency transactions.
By June, there are more than 38 million Facebook users in Bangladesh, making the united states the 10th largest in conditions of audience, according to global data firm Statista.
Facebook is increasingly giving importance south Asian nation, since it has appointed Sabhanaz Rashid Diya as its public policy manager, who'll take care of all matters regarding Bangladesh.
The decision to appoint Diya was announced at a virtual meeting arranged between Facebook's regional headquarter in Singapore and Post and Telecom Minister Mustafa Jabbar earlier this month.
"Bangladesh is an integral country for Facebook in South Asia and it is a priority for us to be closer to the persons and businesses here," said Facebook to The Daily Star on June 22.
