The Procedures of VAT Registration Cancellation in Bangladesh

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

Who are Required to be Registered for VAT in Bangladesh

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