Firms run business operations through more than a unit or branch will be able to obtain single business identification number (BIN) instead of separate BINs for different units or branches for maintaining accounts and payment of value-added tax, according to new rules of the National Board of Revenue.
The VAT wing of NBR on Sunday issued the rules tilted VAT and Supplementary Duty (Receiving Central Registration and Tax Payment) Rules 2019 in this connection.
According to the rules, manufacturers, importers and traders who supply similar or homogenous goods and services from two or more units, branches or places will be eligible to get central VAT registration.
Books of accounts of such businesses will face mandatory audit every year and they will have to maintain books of accounts, preserve documents and pay taxes centrally, the rules said.
A centrally registered company will also have to use the name of the central unit, address and BIN in purchasing raw materials, supplying goods and services and conducting import and export activities.
A field-level VAT office will issue central BIN to a firm in three days after receiving an application, according to the rules.
Businesses obtaining central registration will have to maintain registers of supply goods to every branch or unit while every branch or unit will keep register for sales of goods.
They will have to submit the data of supply and sales of goods to VAT offices with VAT returns.
Officers said that many manufacturers from various sectors like steel products, leather goods and lifestyle items carried out supply and sales from different units while super shops and brand shops sell products from more than an outlet.
Central registration will help the companies to maintain accounts and to pay VAT centrally, they said.
Previously, such companies had to get separate BINs for each outlet. Option for central registration was also open. But they were required to pay VAT before delivering goods to units or branches.
Under the new VAT and SD Act 2012, no VAT is eligible for taking goods from one unit to another.
