Lawmakers Approve Revised VAT Bill

Jul 6 , 2019

Parliament legislated a new Value Added Tax (VAT) proclamation, which replaces a 17-year-old law. The new proclamation will reduce the VAT reporting time from 12 times a year to just four for companies with an annual turnover of more than 70 million Br. The amendment also aims at reducing the workload on middle and lower level taxpayers, as well as time and human resources of the Ministry spent on handling filings from taxpayers who report zero VAT collected, known as nil reports. It will also enable companies to receive refunds for the VAT they paid while buying capital goods of over 100 million Br within a month, which they would not have been able to get unless they become operational according to the previous system.