Bangladesh Bank (BB) has directed all the scheduled banks of the country to ensure the collection of 15 per cent Value Added Tax (VAT) on payment to social media service providers, including Facebook, YouTube and Google, for their services, reports UNB.
Referring to a National Board of Revenue (NBR) letter to the Bangladesh Bank, dated 22 January, the central bank on Monday asked the banks through a circular issued by the Banking Regulation and Policy Department (BRPD) to properly follow the instructions outlined in the letter.
In its letter, the NBR to the Bangladesh Bank said some 15 per cent VAT is collectable from the service providers, including Facebook, YouTube and other advertisement publishers, being operated from outside the country as per the VAT Law 1991.
“The payment against the services is made through the Bangladesh Bank and other banks. The NBR is informed that some banks are not collecting these VAT,” says the NBR letter.
It also mentioned that it has to be made sure that 15 per cent VAT is being deducted while making such payments through credit cards like Master Card or Visa Card, or TT or any mode of payment.