Two global technology giants Google and Amazon have received VAT registration from the National Board of Revenue after two years the NBR made it mandatory as part of becoming VAT compliant in the country.

Some other technology giants, including Facebook and Netflix, are also in the process of obtaining BINs from the NBR.

Of the firms, Washington-based Amazon.com obtained business identification number (BIN), also known as VAT registration, on Thursday while Google Asia-Pacific Pte Ltd took the BIN on Monday, officials of the revenue board said.

They said that the companies also appointed local VAT agents to deal with the issues related to VAT payment and performing other tasks.

VAT wing of the NBR in 2019 brought non-resident foreign companies under the VAT net and made VAT registration mandatory for the firms.

Google, Facebook, Amazon, Youtube, Mircorsoft and some other multinational companies did not obtain the VAT registration and demanded allowing them to obtain the VAT registration and VAT payment directly from outside the country as the NBR initially barred the firms from directly obtaining VAT registration number and paying from their bank accounts.

The NBR also asked the firms to appoint local agents to do the jobs on behalf of the firms or establish their offices in Bangladesh for VAT compliance.

In November 2020, the NBR amended the VAT from making it suitable for global technology firms which do not have physical presence in Bangladesh.

The VAT Online Project of the NBR on April 14 inserted the amended form into the automated VAT system so that the global  technology firms can obtain BIN, submit VAT returns and pay VAT directly through their overseas bank accounts.

The NBR may also make appointment of VAT agent optional for such companies in the next budget for the fiscal year 2021-2022.

Officials of the revenue board said that the two firms which obtained BINs would start VAT returns submission online from the next fiscal year 2021-2022 starting from July.

Currently, the revenue board is receiving VAT at the rate of 15 per cent from the companies as banks deduct the VAT at the time of remitting the money to the accounts of the firms.

But it is not possible for the VAT officials to determine the actual payable VAT amount if the firms do not file the VAT returns, they said.

So, obtaining VAT registration and filing VAT returns are required for compliance and crosschecking the VAT payment, they added.