The National Board of Revenue (NBR) has issued an official circular ordering internet giants like Facebook, Google, Youtube and other digital platforms to file for VAT registration.
In the order issued on Wednesday (Jun 26), the NBR said that the internet platform have t employ a VAT agent, who will ensure VAT from advertisements on these platforms are paid to the state coffer.
In March this year, the government decided to collect 15 percent value added tax (VAT)from the advertisements on internet platforms like Facebook and YouTube.
The authorities have not been collecting any tax from the Bangladeshi advertisers of the virtual world until now.
The move came following a High Court verdict last year, which authorities to tax the transactions on Bangladeshi advertisements posted on Google, Facebook, YouTube and other similar websites.
Related people have long been alleging that the money paid by the Bangladeshi advertisers is going out illegally, causing huge amount of revenue loss as the government was not taxing the advertisers.