Loading...

Businesses get until March 31 for 9-digit e-BIN: NBR

| Updated: December 30, 2017 13:11:14


Businesses get until March 31 for 9-digit e-BIN

The revenue authority has extended the deadline for obtaining nine-digit electronic Business Identification Number (e-BIN) until March 31, 2018 for the businesses, having 11-digit BINs.

Validity of the 11-digit old BINs, which is known as VAT registration numbers, will expire immediately after obtaining the nine-digit e-BINs.

The National Board of Revenue (NBR) issued a public notice on Thursday, making some amendments to its previous notice to this effect.

After the extended deadline, the taxpayers will require to submit their challans, monthly returns and other formalities through mentioning the new nine-digit e-BINs, according to the NBR notice.

NBR, through a public notice issued on July 27, requested all value added tax (VAT)-registered businesses to obtain e-BINs within December 31, 2017, keeping the existing 11-digit BINs valid until the said deadline.

According to the new NBR notice, new firms, having more than one business units, will require obtaining manually issued 11-digit BIN for each unit, if the unit does not have separate electronic taxpayers identification number (e-TIN) and bank account.

The businesses, which have already received central e-BINs and could not obtain the same for their branches for not having separate e-TINs and bank accounts, will continue their business activities with old BINs until March 31.

Besides, no 11-digit BINs will be issued from January 1, 2018 to any non-commercial organisations, including the government offices, NGOs, embassies, international organisations and universities, which do not have e-TINs or national ID cards, and to other entities, except the ones, which cannot obtain e-BINs due to lack of e-TINs and bank accounts.

The authorities concerned will forcefully issue nine-digit BINs for such entities, it added.

NBR started issuing e-BINs from March in a bid to automate its VAT system under the VAT and Supplementary Duty Act 2012 that was supposed to come into force from this July.

The government deferred the implementation of the law until July 2019 following strong oppositions from the business communities.

NBR, however, decided to continue VAT automation process under the 1991 VAT law through amending the rules and regulations.

Till date, only about 76,000 firms have received e-BINs as against 850,000 old BIN-holders in the country. Besides, only around 37,000 businesses file VAT returns regularly, according to NBR.

Meanwhile, NBR has not yet completed legal procedures, including amendment to law, to make the electronically generated nine-digit BINs mandatory for various business activities, including export-import, manufacturing, opening letter of credit, participating in tenders and obtaining loans from January 1.

The VAT authority will have to amend the Value Added Tax Rules 1991 to make it compatible with the online system before making use of e-BINs mandatory, according to officials.

The NBR officials, however, said the amendment procedures would be completed soon for making e-BINs mandatory.

[email protected]

Share if you like

Filter By Topic