NBR selects 600 firms for automated VAT audit

The National Board of Revenue (NBR) has selected 600 firms for VAT audit through a fully automated system, aiming to ensure transparency and reduce human intervention in the process.

In a press release issued on Thursday, the revenue authority said it has successfully implemented an Automated Risk Management Module in the e-VAT system to streamline audit selection.

Under the new system, entities are being selected automatically based on 20 risk criteria – each assigned a specific weightage to assess risk levels without any manual involvement.

The NBR said the introduction of this module fulfils a long-standing demand from taxpayers and civil society for a transparent and unbiased audit selection process.

Initially, 600 firms were selected, and the list was published on the NBR website.

Of these, 405 are manufacturing entities, 98 service providers, 65 wholesale and retail businesses, and 32 are importers or exporters.

The revenue board noted that the risk criteria and their assigned weightage may be revised in the future, depending on the effectiveness of audit outcomes.

According to the NBR, the automated system is expected to enhance transparency, neutrality and efficiency in VAT management, while also helping prevent revenue evasion and making the system more taxpayer-friendly.