Foodpanda sued for evading Tk3.4cr VAT

The VAT Intelligence Directorate, in its latest drive at Foodpanda’s office in Gulshan, has found evidence that the popular food delivery service evaded Tk3.4 crore in Value Added Tax (VAT).

A VAT evasion case was filed against Foodpanda Bangladesh Limited today by the directorate. 

During the drive, VAT Intelligence officials found out that the company has been doing business by registering under Code S-099.10, which does not apply to their type of business. 

The company was doing it in order to gain the facility of 0% VAT on rent, the directorate said. 

Foodpanda delivers food by using an electronic network (online platform). The code for these sorts of services is S-099.60. According to the law, they were supposed to pay 5% VAT on the business and 15 percent VAT on rent. 

During the raid, sales data of Tk27.58 crore was discovered in a computer for the duration of July 2019 to January 2020 and April 2020. But Foodpanda only disclosed sales data of Tk15.65 crore during this period.

The VAT directorate also discovered that in the last eight months, the company has hidden sales data of Tk11.93 crore from the government.