NBR Moves to Digitise VAT Returns with New e-VAT Sub-Module

In a move to make the VAT system more digital and taxpayer-friendly, the National Board of Revenue (NBR) has taken an initiative to store all paper-based VAT returns in the e-VAT system. To this end, a new sub-module titled “Hard Copy Return Entry” has been added to the e-VAT platform.

The NBR said that taxpayers will now be able to enter their previously submitted monthly VAT returns—filed earlier in hard copy—into the system on their own. A circular regarding this initiative was issued on Monday, January 5.

Currently, paper VAT returns submitted by taxpayers are uploaded to the e-VAT system through the Central Processing Center (CPC) of the respective VAT commissionerates, where VAT officials manually enter the data. This process often leads to complications in fixing responsibility in case of data errors, while the large volume of paper returns also makes the process time-consuming.

The NBR further noted that delays in entering paper returns into the system have resulted in the automatic imposition of interest and penalties on many taxpayers. Consequently, a significant number of taxpayers have been unable to use the e-VAT system due to the obligation to pay penalties when filing online returns later.

With the introduction of the new Hard Copy Return Entry sub-module, taxpayers who submitted their paper returns within the time stipulated under Section 64 of the Value Added Tax and Supplementary Duty Act, 2012, will be able to enter those returns into the e-VAT system without any interest or penalties.

Taxpayers will receive notifications via email and mobile phone containing a link to the e-VAT system, through which they can easily access and use the new sub-module.

According to the NBR, all previously submitted paper returns can be entered into the system without interest or penalties until March 31, 2026. Once this process is completed, taxpayers will be able to submit VAT returns online smoothly in the future.

The National Board of Revenue hopes that this initiative will further enhance transparency and accountability in the tax system. The authority has also sought the overall cooperation of taxpayers in its ongoing efforts to fully digitise the VAT regime.

DBTech/BTO/MI/OR