The National Board of Revenue (NBR) has mandated the use of Electronic Fiscal Devices (EFD) or VAT Smart Invoices for 27 categories of businesses in Dhaka, city corporation areas, and district towns in a move to curb VAT evasion and enhance transparency.
According to the NBR’s VAT department, the businesses now required to implement EFDs include residential hotels, restaurants, clubs, fast food outlets, garment retailers, decorators, electronics stores, advertising agencies, shopping mall traders, printing firms, pharmacies (excluding local medicines), confectioneries, gold and jewelry shops, supershops, furniture outlets, laundries, courier services, cinemas, beauty parlors, security and fitness centers, coaching centers, and visa/admission service providers.
The NBR emphasized that using EFDs or certified POS software (SDC/PKI) will ensure accurate VAT reporting and reduce the scope for tax evasion. Businesses found evading VAT may face fines, legal action, or even closure upon repeat offenses.
This initiative is part of a broader campaign to digitize VAT collection and improve government revenue. The rollout of EFDs began in 2020 across five key VAT commissionerates, and in 2022, NBR partnered with Genex Infosys to accelerate EFD deployment in retail businesses. Full-scale operations began in August 2023.
