The National Board of Revenue (NBR) has decided to make the installation of Electronic Fiscal Devices (EFDs) or Sales Data Controllers (SDCs) mandatory at all VAT-eligible hotels and restaurants on the country's highways.

The NBR announced the decision through a press release on Sunday (March 2).

According to press release, many highway restaurants do not issue electronic VAT invoices, leading to improper VAT deposits in the government treasury. Some businesses collect VAT but do not deposit it properly.

In an official directive, the VAT Implementation Wing of the NBR instructed field-level commissioners to ensure the mandatory installation of EFDs or SDCs at all highway restaurants and monitor daily transactions to ensure proper VAT collection.

Genex IT has been working jointly with the NBR for several years to install and manage EFD machines under the IVAS system. The expansion of this initiative to highway restaurants aims to strengthen revenue collection.

To prevent tax evasion, the NBR has taken strict measures, including identifying new taxpayers and adjusting VAT rates while instructing officials to maintain a service-oriented approach when dealing with taxpayers.

The NBR has urged consumers to collect electronic invoices while making purchases at highway restaurants. If customers do not receive VAT receipts, the collected tax may not be deposited into the government treasury. To encourage compliance, the NBR will hold a monthly lottery with over 100 prizes for those who use EFD-generated VAT invoices.

BDST: 1929 HRS, March 02, 2025
MSK