NBR selects 600 entities for VAT audit under fully automated system

The National Board of Revenue (NBR) has,
for the first time, selected 600 entities for VAT audits through a fully automated
process, marking a significant step toward enhancing transparency and
efficiency in tax administration.
According to a
press release issued today (2 April) the move follows the successful
implementation of the Automated Risk Management Module, integrated into the
e-VAT System.
This module
initiates the selection of entities for audit entirely automatically, based on
20 defined risk criteria, eliminating any possibility of manual intervention.
The initial batch of 600 selected entities has been published on the NBR
website.
Of these, 405 are
manufacturing entities, 98 are service providers, 65 are wholesale and retail
traders, and 32 are importers and exporters.
Under the new
system, entities are chosen for audit according to precise risk parameters and
assigned weightages reflecting the level of risk.
Officials noted
that this process addresses long-standing demands from taxpayers and civil
society for a transparent and impartial audit selection mechanism.
The NBR also indicated that if the audits of the selected entities do not yield
effective results, the risk criteria and weightages will be reviewed and
adjusted accordingly.
According to NBR
authorities, the automated system is expected to enhance transparency,
impartiality, and operational efficiency in VAT administration.
Officials also
stated that it is also aimed at fostering a more taxpayer-friendly environment
while curbing revenue leakage.
















