Facebook, You Tube under VAT net from July 1 in Bangladesh
Platforms of internet giant like Facebook, Google and You Tube are being brought under VAT law with effect from July 1. To impose tax on advertisement given in these platforms the government has taken the initiatives.
Concerned said, as a result such types of companies have to appoint representatives or to open office in Bangladesh very soon. The government will collect VAT from them.
VAT Online Project Director of National Board of Revenue (NBR) Syed Mushfiqur Rahman said, the government is not getting mentionable VAT from video streaming site like You Tube.
He said, in fact they have not opened any office in Bangladesh. But after enacting the law they have to open office or appoint representative.
According to the information of e-commerce association, e-CAB, more than 50 thousand facebook pages are associated with e-commerce in Bangladesh. Although the number is more than that in real.
According to e-CAB, each of the e-commerce firms spend at least 8 dollars to 10 thousand dollars per month for digital advertisement and yearly the expenditure is nearly 1 lakh dollars.
But the government is not getting mentionable money from that.
The government can collect handsome amount of revenue from this sector if the new law is effective.