EFD-using businesses to pay penalties for not issuing invoices: NBR

The National Board of Revenue (NBR) issued a General Order on Monday, outlining the legal measures for businesses for not using the Electronic Fiscal Device (EFD) or neglecting to issue invoices through the device.

The business organisations that will be selected to use EFD are required to pay penalties of Tk10,000 for not issuing invoices through the device, according to NBR officials.  

Importantly, businesses caught not using EFD machines and found to have understated evaded VAT amounts during inspections could face penalties ranging from 50% to 100% of the evaded money, along with paying the evaded amount.

However, experts on VAT law clarified that under section 82 of the law, non-compliance with orders could result in penalties of Tk10,000.

The General Order also elucidates the particular process of selecting organisations for EFD deployment and provides detailed operational guidelines.

The EFD system was launched last week after nearly six years of extensive discussions.

Genex Infosys Limited, a private company, has been entrusted with the responsibility of installing and monitoring EFD machines on behalf of the NBR. The deployment will cover three zones in Dhaka and Chattogram, targeting around 25 different types of business establishments.

These are hotels, restaurants, fast food shops, decorators, caterers, motor garages, workshops, dockyards, advertising firms, printing presses, community centres, sweetmeat shops, jewellery stores, furniture outlets, courier services, beauty parlours, fitness centres, coaching centres, clubs, ready-made garment shops, electric and electronic appliance stores, shopping centres, markets, departmental stores, general stores, super shops, small and medium-sized stores, laundries, cinema halls, and security services.