The National Board of Revenue (NBR) has extended the deadline for VAT return submission till March 18 following a technical glitch in its online system, the Integrated VAT Administration System.

In a letter to field offices of customs and value added tax (VAT), the NBR said the issue occurred due to a surge in concurrent users and aging hardware. 

March 16 was the last date for filing VAT returns, but as many taxpayers could not complete the process, the deadline was extended, it said. 

Dr Md Abdur Rouf, member (VAT Policy) at the NBR, said the problem arose due to the rush of firms seeking to submit their returns. 

"If companies file their returns by the 10th of every month, they will be able to do so smoothly," he said. 

Currently, around 3.25 lakh VAT-registered entities file returns online, while 23 percent submit hard copies.

In total, roughly 4 lakh firms out of 5.81 lakh VAT-registered entities file returns, according to NBR data. 

"We are discouraging submission of hard copies," he added.