EFDMS
Challenge
From the beginning of the tax environment in Bangladesh, there was always an absence of automated VAT collection system throughout the whole process. Government has always planned to ensure a transparent environment for VAT collection as NBR VAT system provides significant amount of revenue to public fund. Again manual system of VAT collection creates scope of fraud in the overall process of reaching paid VAT to the Government. So citizens are also unaware of it whether their paid VAT add value to the public fund or not. EFDMS (Electronic Fiscal Device Management System) – a long cherished initiative under VAT Online Project of NBR (National Board of Revenue) started its noble journey keeping the goal of eradicating these problems in mind.
Electronic Fiscal Device Management Systems (EFDMS) has been introduced to optimize self- compliance by increasing regular filers, and by reducing stop-filers and non-filers, reducing the tax gap and tax disputes, to increase arrear collection and to increase issuance of refund. Installing EFDMS would make the whole VAT system transparent and efficient for the management along the users.
Solution
Synesis IT is reputed for providing Large Scale Government to Government, Government to Citizen, Government to Business e-Governance Solutions and also Advanced Enterprise Scale Software Solutions. SZZT-KMMT-SYNESIS-EATL JV came along as a solution partner of NBR to implement this nationwide important project EFDMS by giving solution to check and control VAT evasion at the retail and wholesale levels across the country. Definitely it will play a big role saving thousands of Crore revenue from VAT Fraud. The following Electronic fiscal device management system aiming to replace the existing electronic cash register machine to automate the sales record at shops in the country, which include hotels, restaurants, sweetmeat shops, furniture and clothing stores, beauty parlors, super shops, jewelry, all shops at shopping malls and other big and medium wholesale and retail shops located in all city corporation areas and district headquarters.
All EFD devices would remain connected with EFDMS server to be installed at NBR. It would ensure that traders would not be able to erase or manipulate the sales data from the devices. Currently, NBR has no server connected to the ECRs (Electronic Cash Register) using by shopkeepers which is one of the major reason controlling VAT Fraud. Under this new technology, NBR will be able to monitor real time sales data at shops and control VAT evasion. At the same time, customers will also be able to know whether the VAT they have paid have gone to the government exchequer or not.
SZZT-KMMT-SYNESIS-EATL JV will provide Online VAT collection platform and MIS application platform, 10,000+ EFDs and 500+ SDCs in the first installment and managed service on 24-7 basis nationwide coverage as a major part of their solution. This central web based and API based software will be installed at each Data center having capacity of handling 2000 Transactions per second (TPS). The DC and NOC setup will provide uninterrupted and real-time invoice data transfer between EFDs and VAT management system of NBR. Integration with NBR VAT System, Bangladesh Bank, all Retail Outlets will also be included.
Social Impact and Benefits
- Through EFDMS Government will have up-to-date information about the collected VAT amount by the outlets throughout the country.
- Government will be able to identify the VAT amount owed by the outlets, thus, the gap between collected and deposited VAT will be reduced, the entire VAT collection process will be more transparent and accountable.
- Capture real-time status of VAT collection and Big Data analysis that will provide information for Top-Management decision making such as information of periodical revenue, VAT refund, VAT payable etc.
- Citizens will also have a clear picture about their paid VAT.
- Connects wholesale and retailers for sending their VAT data from the servers of large outlets and EFDs.
- Transparent and Efficient solution for the VAT collection system of the country.
