In a move to bolster transparency and efficiency, the National Board of Revenue (NBR) has identified 600 businesses for Value Added Tax (VAT) audits utilising a new, fully automated selection process.
According to a press release issued today, the revenue authority has integrated an Automated Risk Management Module within its e-VAT system to ensure the selection is objective and clear.
This development addresses a persistent request from both the public and taxpayers for a more transparent auditing framework.
The selection mechanism relies on 20 distinct risk factors, each with a designated weightage. Because the system operates automatically, it removes any opportunity for manual interference in choosing which firms are audited.
The initial cohort of 600 firms includes 405 manufacturing entities, 98 service providers, 65 retail and wholesale businesses, and 32 companies involved in import and export. A detailed list of these organisations has been made available on the official NBR website.
The NBR indicated that the specific risk criteria and weightings are not static; they will undergo future reviews and modifications if the audits do not yield the intended results.
The board expects this automated approach to improve neutrality and efficiency in VAT administration while making the process more accessible for taxpayers and assisting in the prevention of revenue loss.
