NBR rolls out automated system to speed up VAT refunds

The National Board of Revenue (NBR) has introduced a series of measures to streamline the value-added tax (VAT) refund process, aiming to address long-standing complaints from exporters and businesses over delays, procedural complexities and liquidity pressures.

NBR Chairman Md Abdur Rahman is scheduled to inaugurate the revamped system on Wednesday at a programme at the Revenue Building, officials said.

The initiatives are part of broader efforts to modernise VAT administration, improve compliance and support legitimate taxpayers, particularly export-oriented industries that rely on timely refunds to maintain cash flow.

Under the VAT regime, businesses are entitled to refunds when their input VAT exceeds output VAT — a situation commonly faced by exporters, whose supplies are zero-rated.

However, delays in refund disbursement have remained a persistent problem, with many companies waiting months and, in some cases, years to receive eligible amounts.

To address the issue, the NBR has expanded the use of its automated e-VAT system, allowing taxpayers to submit refund applications online along with required supporting documents.

Senior NBR officials said the objective is to prevent fraudulent claims without causing harassment or unnecessary delays for genuine taxpayers.

"We are trying to make the refund process faster, more transparent and less discretionary," an NBR official told UNB, adding that greater automation would significantly reduce human intervention, which has been a major source of delays and disputes in the past.

As part of the reforms, the NBR has also issued updated guidelines to VAT offices, setting indicative timelines for processing refund claims. Field-level officials have been instructed to strictly adhere to these timelines and refrain from seeking repetitive or irrelevant documents from applicants.