Persons required to be registered for VAT

According to the Section No. – 04 of Value Added Tax and Supplementary Duty Act, 2012 following persons are required to be registered for VAT in Bangladesh:

(1) Irrespective of any central, or branch unit, each of the following persons shall, from the first day of a month, be required to be registered for VAT, namely—

     (a) a person whose turnover exceeds the registration threshold within a 12 (twelve)- month-period closing at the end of the month preceding that month; or

     (b) a person whose estimated turnover exceeds the registration threshold within the succeeding 12 (twelve)- month-period beginning at the start of the start of the preceding month.

(2) Notwithstanding anything contained in sub-section (1), every person carrying on the following economic activities of—
Has to be registered for VAT, if he—
     (a) manufactures any good subject to supplementary duty in Bangladesh; or

     (b) supplies any service subject to supplementary in Bangladesh;

Source: www.nbr.gov.bd

VAT Registration: Who are required to be registered for VAT

According to the Section Number 4 of the Value Added Tax and Supplementary Duty Act, 2012, all of the Persons or business entities don’t need to be registered for VAT. But, following persons or business entities are required to be registered for VAT: 

     (a) a person whose turnover exceeds the registration threshold within a 12 (twelve)- month-period closing at the end of the month preceding that month; or

     (b) a person whose estimated turnover exceeds the registration threshold within the succeeding 12 (twelve)- month-period beginning at the start of the start of the preceding month.

(2) Notwithstanding anything contained in sub-section (1), every person carrying on the following economic activities of—
Has to be registered for VAT, if he—
     (a) manufactures any good subject to supplementary duty in Bangladesh; or

     (b) supplies any service subject to supplementary in Bangladesh;

VAT Registration: Authority & Process

Ultimate Authority of VAT registration is National Board of Revenue (NBR) in Bangladesh. NBR has made digitalization of VAT registration process. If any one to make an application for VAT registration he or she will do that in the VAT Online Service or by going to eBIN registration process. NBR has started Online VAT Registration process. Required documents for VAT registration is also see here. You may contact with us. 

Monthly VAT Return Submission

Every VAT registered persons or entities must submit monthly VAT return by calculation VAT and deposited to the Govt. Treasury. For Monthly Online VAT return submission, we are here to help you.

VAT Digitalization

You may calculate your VAT by VAT Calculator. You can learn about VAT in the NBR website. You will find here all VAT acts. You also make VAT payment by using e-payment portal of VAT online payment. 

Section No. – 10: Persons required to be enlisted and their enlistment.—

(1) If a person, carrying on an economic activity, exceeds at the end of any quarter of a 12 (twelve)-month period, the enlistment threshold, but does not exceed the registration threshold, such person shall make, within 30 (thirty) days from the end of such a quarter, on such terms and in such manner as may be prescribed, an application to the Commissioner for enlistment as a turnover taxpayer.

(2) The Commissioner shall, after enlisting such person as a turnover taxpayer within such time, on such terms and in such manner as may be prescribed, issue a turnover tax certificate containing a business identification number.

Source: www.nbr.gov.bd

Section No. – 9: Cancellation of VAT registration.—

(1) If a registered person refrains from carrying on his economic activities, he may make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for the cancellation of VAT registration.

(2) A person, who continues to make taxable supplies, but does not require to remain registered any more, may, within such time, on such terms and in such manner as may be prescribed, may apply to the Commissioner for the cancellation of his registration:

 Provided that a person who is registered voluntarily under section 8 shall require remaining registered for at least one year.

(3) The Commissioner may, within such time, on such terms and in such manner as may be prescribed, cancel the VAT registration.

(4) If a registered person does not apply for the cancellation of VAT registration under sub-section (1), and if it appears to the Commissioner, on appropriate enquiry, that the VAT registration of such person is liable to be cancelled‚ he shall issue an order directing such person to make an application for the cancellation of VAT registration; and if no such application is made in accordance with such order‚ the Commissioner may‚ suo moto‚ cancel the VAT registration of such person.

(5) If, after the cancellation of a VAT registration of a person, it appears to the Commissioner that such person is required to be enlisted‚ then he may‚ suo moto, or upon an application‚ enlist such person as a turnover taxpayer.

(6) Where registration of a registered person is cancelled, he shall–

(a)  without much delay, refrain from using or issuing any tax invoice, integrated tax invoice and withholding certificate, credit note, debit note, etc; and

(b)  return the VAT registration certificate, and all certified copies thereof, to the Commissioner within such time as may be prescribed, and pay the arrear taxes, and file a final VAT return.

Source: www.nbr.gov.bd

Section No. – 8: Voluntary VAT registration.—

(1) Any person, making a taxable supply in the process of economic activities are not required to be registered, may voluntarily make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for VAT registration.

(2) The Commissioner shall, after registering such person within such time, on such terms and in such manner as may be prescribed, issue a VAT registration certificate containing a business identification number.

Source: www.nbr.gov.bd

Section No. – 7: Publication and preservation of a list of registered persons.—

(1) The Board shall, from time to time, prepare, in such manner as may be prescribed, a list of registered persons and publish , circulate and preserve such list.

(2) No person, whose name is not included in the published list, shall be considered a registered person.

(3) Every person, whose name is included in such list, shall be treated as a person registered under this Act.

Source: www.nbr.gov.bd

Cancellation of VAT registration

According to the Section No. – 9 of Value Added Tax and Supplementary Duty Act, 2012 following ways VAT registration will be cancelled in Bangladesh:

(1) If a registered person refrains from carrying on his economic activities, he may make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for the cancellation of VAT registration.

(2) A person, who continues to make taxable supplies, but does not require to remain registered any more, may, within such time, on such terms and in such manner as may be prescribed, may apply to the Commissioner for the cancellation of his registration:
Provided that a person who is registered voluntarily under section 8 shall require remaining registered for at least one year.

(3) The Commissioner may, within such time, on such terms and in such manner as may be prescribed, cancel the VAT registration.

(4) If a registered person does not apply for the cancellation of VAT registration under sub-section (1), and if it appears to the Commissioner, on appropriate enquiry, that the VAT registration of such person is liable to be cancelled‚ he shall issue an order directing such person to make an application for the cancellation of VAT registration; and if no such application is made in accordance with such order‚ the Commissioner may‚ suo moto‚ cancel the VAT registration of such person.

(5) If, after the cancellation of a VAT Registration of a person, it appears to the Commissioner that such person is required to be enlisted‚ then he may‚ suo moto, or upon an application‚ enlist such person as a turnover taxpayer.

(6) Where registration of a registered person is cancelled, he shall—

(a) without much delay, refrain from using or issuing any tax invoice, integrated tax invoice and withholding certificate, credit note, debit note, etc; and

(b) return the VAT registration certificate, and all certified copies thereof, to the Commissioner within such time as may be prescribed, and pay the arrear taxes, and file a final VAT return.

Source: www.nbr.gov.bd

Section No. – 6: VAT registration.—

(1) Every person required to be registered shall make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for VAT registration.

(2) The Commissioner shall, after registering such person within such time, on such terms and in such manner as may be prescribed, issue a VAT registration certificate containing a business identification number.

(3) If the application under sub-section (1) is not made as required under law, the Commissioner shall inform the matter in writing to the applicant.

Source: www.nbr.gov.bd

Section No. – 5: Registration of central, or branch unit.—

(1) Every person required to be registered for his economic activities shall have only one VAT registration for the central, and all the branch units.

(2) Notwithstanding anything contained in sub-section (1), a branch unit that maintains the records, and keeps the accounts, independently and separately from the central unit, may have a separate VAT registration.

(3) Every branch unit registered separately shall, for the purposes of this Act, be regarded as a separate taxpayer.

(4) Movement of goods or exchange of services from one branch unit to another separately registered branch unit of the said economic activity shall not be treated as supplies and, consequently, there shall arise no output tax liability or input tax credit claim.

Source: www.nbr.gov.bd

BIDA Investors Service

                   

BIDA offers support and guidance on every turn of the path of investment. Here are few of the services that BIDA provides on a complimentary basis-

• Gives a comprehensive pre-investment information and counseling service
• Investors enjoys a faster immigration services and also viable to other welcome services
• Quick and hassle-free registration and approval of foreign, joint-venture and local projects.
• Help foreign nations to gain work permit quickly.
• Give instruction, guidance and approval in opening foreign companies branch, liaison and representative offices in Bangladesh.
• Give assistance in obtaining industrial plots.
• Facilitating utility connection ( gas, electricity, water, telecoms, sewerage etc) for industrial complex.
• Approve foreign loan suppliers’ credit, PAYE scheme etc.
• Give proper assistance, utility and facilities to set up a new business.
• Assist obtaining visa/IP/LP/IRC/Visa on arrival
• Provide assistance to gain warehousing license and import clearance
• Support is given in importing capital machinery and raw materials
• Help investors finding suitable suppliers, joint-venture and subcontractors partners.
• Give access and help make connection with important private and public organizations.
• Give quick consent to remittances of royalty, technical assistance fees and technical know-how.
• Arrange site visits for foreign investors.
• Coordinate and communicate between the foreign business community and other public agencies.
• Offers comprehensive information and advice on starting and maintain operations in Bangladesh.
• BIDA has an Online Registration System (ORS) to make registration quick and effective.
• BIDA also provide Online Service Tracking (BOST)

Investment made in Public Private Partnership (PPP) enjoy 100% tax exemption for certain projects on capital gain and income.

Investors get 100% tax cut from Nationwide Telecommunication Transmission Network and Information Technology Enabled Services and software development also enjoys the same tax cut.

Interest paid on foreign loan get preferential tax exemption.

Royalties, technical assistance fees, technical knowhow, facilities  for repatriation get tax cut.

Income gets 50% tax exemption if its derived from export.

2.Machinery and plants enjoys accelerated Depreciation.

3. Raw materials used for producing export goods and also capital machines that are used for export goods get on exemption on import and custom tax.

4. Investors get a refund in tariff on import of raw material for export if it’s already paid.

5. Investors enjoys double taxation prevention if the product destined to export in countries has an double taxation voidance treaty with Bangladesh.

6. Investors are allowed to own 100% of the project they invest in.

7. Export oriented industries and large import for local selling gets bonded warehousing facilities.

8. Profits and dividend accumulating to foreign investment might be transferred in full. Full repatriation of capital invested from foreign sources will also be allowed. If foreign investors reinvest their dividends and or retained earnings, those will be treated as new investment.

9. The Foreign Private Investment (Promotion & Protection) Act. 1980 guarantees legal protection to foreign investment against expropriation and nationalization in Bangladesh.

10. International and local laws protect the Intellectual Property right.

11. In order to protect the investment bilateral and multilateral investment agreements are lawfully enforces.

12. Foreign nationals and employees easily access work permits to work on projects and no restriction is enforced on them.

13. Foreign Investors are permitted to work with local banks to secure capital.

14. 100% FDI or Joint Venture FDIs are permitted to partake in the primary and secondary stock markets.

15.100% FDI, Joint Ventures Partnerships, PPPs, Non-equity mode (Technology transfer, licensing Franchising, contracting etc.), and Foreign Lending are accepted.

16.Local and foreign investment get equal treatment for business.