VAT Registration Certificate & Vat Consultant in Bangladesh

VAT Registration Certificate & Vat Consultant in Bangladesh

• Trade license
• TIN certificate
• Import Registration certificate/export registration Certificate
• List of all sales shops; Sales centers, full address, equipment, machinery, fittings, product features and amendment of the products manufactured.
• List of invoice and stored product
• Passport sized photos
• Deed of Agreement
• Bank solvency certificate
• BOI registration
• Certificate of Incorporation, Particulars of Directors Form – Xii & Memorandum of Association (MOA) and Articles of Association

Value Added Tax (VAT) is a form of indirect tax that is added to the value of all goods (imported or supplied) and services being supplied. Value Added Tax is liable to be deposited at the Treasury by the person who supplies goods and services upon having collected the amount from the consumer. VAT Consultants in Bangladesh are those helping hands who shall ensure that your business is complying with the all the VAT and TAX related laws and regulation. The Value Added Tax (VAT) Act 1991 and the VAT Rules 1991 are the laws that govern and regulate the payment and procedure of the VAT. FM Consulting Internation provides the VAT Consultancy to several prominant companies, restaurant, and corporations in Bangladesh. To avail our services click here to see our TAX services here and contact us.

Under the VAT Act 1991, every supplier and provider, importer and exporter of taxable goods and services are under an obligation to register themselves in the manner prescribed by the Rules. In order to be registered, the documents that need to be submitted in prescribed forms are as follows:

• Make an application in form “MUSHOK-6”;
• Submit declaration in form “MUSHOK-7”;
• Submit 2 copies of photographs of the chairman/managing director/ authorized person;
• Submit trade license, TIN certificate and National Identification Number;
• For Import Business – submit Import Registration Certificate (IRC);
• For export business – submit Export Registration Certificate (ERC);
• Blue print of the compound of the registered office;
• Submit deed regarding the ownership or lease of land, house or building;
• For Limited Companies – Submit Articles of Association and Memorandum of Association;
• For Partnership – Deed of partnership.

In case of any change being made after the registration has been completed, the concerned officer must be informed by submitting the prescribed form, namely, MUSHOK 9 within 14 days after the change has been made.

The VAT must be submitted within the time specified by the Act, which includes:

• For goods manufactured, produced, imported, purchased, acquired or produced the VAT must be paid when:
• Delivery and supply of goods has been made;
• Invoice has been issued;
• Goods used for personal reasons or supplied for the use of others;
• Payment received in full or part.
• For taxable services, VAT will be paid when:
• Service is rendered;
• Invoice is issued;
• Payment in full or part has been received.
• In case of services received from beyond the geographical area of Bangladesh, VAT needs to be paid when payment is made in part or full.

In general, VAT at the rate of 15% is imposed on the base value of all goods and services being imported or supplied. VAT at the said rate will not be imposed on the imported goods listed under the first schedule of the Act, and the list of the supply of goods not mentioned under the said Schedule. In addition to that, different rates of VAT will be applicable on the services rendered or imported that have been listed in the second schedule of the Act.

In case of failure to pay VAT by a registered person at the specified time and at the specified rate, the VAT Act 2004 stipulates the penalties which may include monetary fine or imprisonment.

In the presence of a VAT Consultant, a businessperson needs not to be concerned about any VAT related issues as those are being dealt by the consultant with expertise and in a professional manner. A VAT consultant can provide precise information and advice regarding the procedure of registration, amount of VAT that needs to be paid and ensures all paper works relating to VAT and other taxes are up to date, thereby, minimizing chance of any error.

TAX AND CUSTOMS REGULATIONS BRIEF :

The taxation in Bangladesh can be differentiated into three, namely, income tax, value added tax (VAT) and customs duties. Income Tax Ordinance 1984 and Income Tax Rules 1984 regulate the income tax of Bangladesh. VAT is governed by the VAT Act 1991 Customs duties are governed by the Customs Act 1969. Tax year in Bangladesh for companies other than financial institutions is from July to June. With regards to income tax, a private company limited by shares has to pay corporate tax at . Branch office is given the same status as a private limited company and taxed at the same rate. Liaison office cannot undertake commercial activity and tax rate is nil, although tax return is to be submitted. On an individual capacity, non-resident is taxed at maximum rate of 30% while residents have to pay tax on a lower slab based progressive tax rates. Non-residents are those people who spend less than 182 days in an income year but there are some provisions for person who spends at least 90 days in Bangladesh. Upon application, each person or company has to obtain a taxation identification number which allocates him to specific taxation authority. Company has to obtain permission from competent authority before employing a foreign employee. An entity also has the responsibility to deduct taxes at source before making any payments. With regards to VAT, there is VAT at several rates with truncated rates. Generally the rates are around 15% which has to be paid generally on a monthly basis. Besides, the entities also have a responsibility to deduct VAT at source while making payments pertaining to certain sectors. However, VAT as well as taxes has been exempted in a number of sectors for companies entering into Production Sharing Contract (PSC) with the government. The customs duties in Bangladesh vary from product to product which is determined by the Finance Act promulgated each year. The largest customs station in the country is Chittagong which runs on automation process system call the ASyCuDa++.

Goods that are Chargeable by Custom Duty

There are several categories of goods that are considered to be chargeable by the Government of Bangladesh while crossing the immigration. If you are travelling from abroad or buying any goods which is being transported from abroad, in either of the scenario you must know that the following list of goods are subject to Custom Duty (A traveller or an importer needs to pay for bringing such goods within the territory of Bangladesh).

1. 22”- Up to 29” - 5,000
2. 30” – up to 36” - 10,000
3. 37” – up to 42” - 20,000
4. 43” – up to 46” - 30,000
5. 47” – up to 52” - 50,000
6. 53” and above - 70,000
2. Music Center including More then 4 to 8 numbers of Speaker/ Home theater(CD/VCD/DVD/LD/ MD/ Bu re disk) including any number of Speaker - 8,000
3. Refrigerator/ Chest Freezer - 5,000
4. Air Cooler/ Air Conditioner: Window type - 7,000 Split type Up to 18,000 BTU - 15,000 Split type above 18,000 BTU - 20,000
5. Dish Antenna 7,000
6. Gold bar ( Highest 234 gm or 20 Tola) - 3,000 BDT. (Per 11.664 gm)
7. Silver bar ( Highest 234 gm or 20 Tola) - 6 BDT.(Per 11.664 gm)
8. HD Cam, DV Cam, Beta Cam, and any camera used in professional work - 15000 BDT
9. Air gun/ Air Rifle ( Import Permitted by Commerce Ministry) - 5,000 BDT
10. Chandelier - 300 BDT (Per Point)
11. Carpet Up to 15 Square Feet (SFT) - 150 BDT ( per SFT)
12. Dish Washer/Washing Machine/ Cloth Dryer - 3000 BDT