NBR selects 600 institutions for automated VAT audit

The National Board of Revenue (NBR) has selected 600 institutions for VAT audits through a fully automated system.

In a press release issued on Thursday (April 2), the NBR said it has launched an “Automatic Risk Management Module” in the e-VAT system to ensure transparency in audit selection.

The system uses 20 risk indicators to identify institutions. Companies are selected automatically based on risk level and preset weightage, with no scope for manual intervention.

The NBR said this approach addresses long-standing concerns from taxpayers and civil society about transparency in the audit process.

If audits do not produce expected results, the NBR will revise the risk indicators and their weightage.

The initial list of 600 institutions has been published on the NBR website. It includes 405 manufacturers, 98 service providers, 65 retailers and wholesalers, and 32 importers and exporters.

The NBR expects the system to improve transparency, fairness, and efficiency in VAT management, while supporting a more taxpayer-friendly environment and reducing revenue evasion.