NBR finds nearly Tk2cr VAT evasion by online business

The National Board of Revenue (NBR) has found preliminary evidence of nearly Tk2 crore in VAT evasion by a company engaged in online and showroom-based sales, raising concerns over tax compliance in the rapidly expanding e-commerce sector.
The Audit, Intelligence and Investigation Directorate of the VAT Department uncovered the suspected evasion after conducting simultaneous raids on two showrooms of Alpha e-Shop in the capital on Tuesday and seizing documents related to the company’s purchases and sales.
Two preventive teams from the directorate’s Dhaka office conducted the raids and seized various commercial documents, NBR sources said.
Alpha e-Shop imports and locally procures a range of products, including branded fans, decorative lighting, chandeliers, electronics, interior design materials, air conditioners and televisions. It also provides interior design services for residential and commercial properties through its own team.
The company markets and sells its products through Facebook and other online platforms, using social media influencers to reach customers.
The directorate’s preliminary review found that the company operates through multiple sales channels, including corporate and showroom sales, online sales, call and WhatsApp orders, dealer sales and its website. It has showrooms in Banani-11 and Mirpur-12.
An initial examination of the seized documents indicated VAT evasion of nearly Tk2 crore, according to the directorate. An initiative has been taken to recover the evaded revenue, and the company has agreed to pay the amount, NBR sources said.
The seized documents and other information are being examined in detail. Further legal action will be taken based on the findings of the ongoing review, the directorate said.