Ride-sharing services come under VAT net
07 Jun 2018, 19:28
Sangsad Bhaban: The ride-sharing services of the country come under VAT net as the government has decided to slap five per cent VAT on the earning of the app-running authorities.
The National Board of Revenue (NBR) has issued an SRO in this connection.
In the SRO, the revenue collecting authority said the ride-sharing service does not enjoy the VAT exemption as it is not included in the second schedule of the VAT Law 1991.
It mentioned that as per the second schedule of the VAT Law 1991 the earning of the ride is VAT exempted, but the share that the app authorities earn from the riders is VAT payable.
‘The app-running authorities have to pay five percent on their earnings,’ the SRO reads.