The National Board of Revenue (NBR) has detected an estimated Tk 20 million in VAT evasion by an online-based retailer during a raid on its two showrooms in Dhaka.
The VAT Audit, Intelligence and Investigation Directorate conducted the operation at Alpha e Shop on Tuesday, following a field-level survey into VAT evasion by online businesses, according to an NBR press release issued on Wednesday.
Two enforcement teams of the directorate simultaneously raided the retailer’s two showrooms and seized commercial documents relating to its purchases and sales.
The documents showed that the company sells products through multiple channels, including corporate sales, showroom sales, its Banani online showroom, online and WhatsApp call sales, dealer sales and its website.
The company also operates physical showrooms in Banani-11 and Mirpur-12, the NBR said.
Alpha e Shop imports and locally procures high-end branded fans, decorative fans, lighting products, chandeliers, electronics, air conditioners and televisions, among other products, and sells them through online and physical outlets.
It also provides complete office and residential interior-design services through its own interior-design team.
According to the NBR, the company promotes its products through Facebook and other social-media platforms and uses social-media influencers for advertisements, similar to the marketing practices of clothing brands.
A review of the seized commercial documents initially found VAT evasion amounting to around Tk 20 milion, the revenue authority said.
The company has verbally agreed to pay the evaded revenue, while further legal action is being taken after reviewing the documents collected during the raids.
The NBR said its research team has been conducting field-level surveys on VAT evasion by online businesses and has recently brought several online-based businesses under investigation.
The latest operation is part of the revenue authority’s efforts to identify VAT evasion amid the rapid expansion of online commerce in the country.
