Online VAT return filing made mandatory in 11 sectors

National Board of Revenue (NBR) has made online VAT return filing mandatory in 11 sectors including cigarette, medicine, mobile phone, banking and mobile banking.

The VAT wing of NBR issued an order in this regard on Sunday (September 20). The order will be effective from the day of its issuance.

According to the new order, the sectors in which online VAT return filing has been made mandatory are cigarette, mobile phone, MS products, medicine, beverages, cement, tiles, paint and varnish, insurance, banking and non-banking services and mobile banking services.

NBR has informed that this decision has been taken by virtue of the power given in sub-section (5) of section 64 of the Value Added Tax and Supplementary Duty Act, 2012 and rule 118(a) of the Value Added Tax and Supplementary Duty Rules, 2016. As a result the product manufacturers and service providers of the listed sectors will have to submit the VAT return online through NBR’s eVAT portal.

The order further said that if any registered person is also involved in the supply of any other product or service alongside the listed products or services, the obligation of online VAT return filing will also be applicable in their case.

After the new order becomes effective, the orders previously issued by NBR on making the submission of returns online mandatory will be deemed cancelled. That is, the new order will remain effective in the case of the concerned sectors.

However, NBR has reserved the power to add any new sector to this list or exclude any sector at any time as per necessity. As a result the scope of the obligation of online VAT return filing may change further in the future.