NBR seeks data on charges of ride sharing cos

DOT Desk: National Board of Revenue has sought a set of data including accounting system and fare setting method from mobile apps-based ride sharing companies to remove complexities in collecting value-added tax on the service. In a letter issued on January 20, VAT wing of NBR asked Uber Bangladesh Ltd and Patho Ltd, the two major ride sharing companies in the country, to send the required data on emergency basis to solve the problem. NBR also asked Uber to send the copy of agreement between Uber Bangladesh and its parent company Raiser Operations BV, known as Uber Netherlands.
NBR sought information on how the companies set discount or promo against a ride and how they determine the total fare of a ride.
It also wanted to know whether there was any scope for monitoring the system online to ensure revenue collection from the sector or there were any scope for sending the information to tax officials for examination.
In the letter, NBR also said that it was legally mandatory for the company to separately mention the information related to total fare, amount or rate of discount, commission and amount of VAT in the VAT returns.
NBR wanted to know whether there was any technological problem in the system in generating the information online and, if any, how many days it would take to solve the problem.
The companies were also asked to provide details of online advertisements mechanism and total paid VAT for the service.
NBR officials said that they took the move to solve problems it was facing in collecting VAT from ride sharing companies on questions whether VAT would be applicable on net fare excluding discount or total fare including discount given to the rider
Ride sharing companies also give discount to its drivers from the commission the companies charge from the drivers against fare.
The companies usually charge 20 per cent to 25 per cent commission or service fee from drivers’ earnings.
Uber Bangladesh Ltd in July last year sought a clarification from the NBR on the issue including VAT applicable amount of fare.