Value Added Tax (VAT) Services in Bangladesh: 

A Comprehensive Legal Guide by Income Tax and VAT Law Firm’s and SDTT ACADEMY.

In today’s dynamic and regulated business environment, Value Added Tax (VAT) has emerged as one of the most critical areas of tax compliance for businesses in Bangladesh. VAT is not only a statutory obligation but also a significant aspect of a business’s operational and financial planning. At Income Tax and VAT Law Firm’s and SDTT ACADEMY, we provide comprehensive legal services related to VAT to help businesses remain compliant with the law, minimize risk, and optimize operational efficiency.

Introduction to VAT in Bangladesh

Value Added Tax (VAT) is an indirect tax imposed on the value added to goods and services at each stage of production or distribution. Introduced in Bangladesh in 1991, VAT has gone through various legal transformations, with the latest major reform being the Value Added Tax and Supplementary Duty Act, 2012, which came into force in July 2019. This act, administered by the National Board of Revenue (NBR), brought automation, transparency, and a simplified structure into the VAT system.

VAT is a consumption-based tax where the final burden is borne by the end consumer. Businesses, however, are responsible for collecting and remitting the tax to the government.

VAT Registration Requirements 

Under Bangladeshi law, businesses engaged in the manufacture, import, export, and supply of taxable goods or services must register for VAT if their annual turnover exceeds BDT 3 million. 

   Registration is mandatory for:

Manufacturers and importers

Service providers and suppliers

Exporters and commercial enterprises

Contractors and government suppliers

To register, businesses must obtain a Business Identification Number (BIN) through the VAT Online System (VOS), launched by the NBR.

Steps for VAT Registration:

Create an account on the VAT Online System

Submit the online application with relevant business documents

Upload scanned copies of required documents, including Trade License, TIN, National ID, lease/rental agreement, bank details, etc.

Receive the BIN certificate electronically

Our firm provides end-to-end support in the VAT registration process, ensuring full legal compliance and accuracy.

VAT Return Filing and Compliance

Once registered, businesses are obligated to file monthly VAT returns using the Mushak-9.1 form. Returns must be filed by the 15th of each month for the previous month’s transactions. 

 Filing requirements include:

Accurate calculation of input and output VAT

Submission of Mushak forms (6.1, 6.2, 6.3, 6.4, etc.)

Maintenance of transaction records and invoices

Timely deposit of VAT payable to the government treasury

Non-compliance can lead to penalties, interest, and in severe cases, legal proceedings.

At Income Tax and VAT Law Firm’s and SDTT ACADEMY, our team offers:

Monthly VAT return preparation and filing

Reconciliation of VAT accounts

Correction of previous VAT errors or omissions

Compliance reviews and internal audits

Understanding Mushak Forms

A central part of VAT compliance involves the proper preparation and submission of prescribed Mushak forms:

Mushak-6.1: Purchase information

Mushak-6.2: Sale information

Mushak-6.3: VAT invoice

Mushak-6.4: Debit or credit note

Mushak-9.1: Monthly VAT return

Our legal team ensures proper documentation and review of these forms to avoid mismatches and audit triggers.

VAT Input-Output Tax Credit System

One of the advantages of VAT is the ability to claim input tax credit. Businesses can deduct the VAT paid on purchases (input tax) from the VAT collected on sales (output tax). 

Proper claim of input credit requires:

Valid VAT invoices

Accurate purchase records

Timely filing of returns

Proper classification of goods and services

We help clients manage and optimize their input tax credit while avoiding common pitfalls like duplicate claims or non-eligible inputs.

VAT Audits and Investigations

The NBR has the authority to conduct audits or investigations to verify compliance. 

Triggers may include:

Delays in VAT filing

Mismatched Mushak forms

Discrepancies in sales/purchase records

Anonymous complaints or random selection

During an audit, the NBR may demand records, impose fines, or issue show-cause notices.

Our law firm offers:

Audit preparedness reviews

Representation during NBR audits

Responding to notices and allegations

Filing appeals or tax tribunal cases, if necessary

VAT Challenges Faced by Businesses

Despite automation and reforms, VAT compliance in Bangladesh can be challenging. 

Common issues include:

Complex and evolving legal framework

Unfamiliarity with Mushak forms

Record-keeping burdens

Staff inexperience or frequent mistakes

Technical errors in the VAT Online System

These challenges increase the risk of non-compliance, penalties, and business disruption. Our firm bridges these gaps by providing expert legal counsel and hands-on support.

Special VAT Cases and Sector-Specific Issues

Certain sectors face unique VAT regulations:

Exporters: Eligible for VAT exemption or zero-rated benefits

Real Estate: VAT on flat sales and land development

Construction: Complicated input-output matching

Telecom & Digital Services: Cross-border VAT concerns

NGOs and Donor-Funded Projects: Special compliance requirements

We provide tailored legal advice for these and other sectors to ensure accurate and lawful VAT practices.

Strategic VAT Planning and Advisory

Beyond compliance, we help businesses plan their operations to minimize VAT liability lawfully:

Tax-efficient procurement strategies

Contract structuring to mitigate VAT impact

Risk analysis and control measures

Internal VAT policy development

Our advisory services empower businesses to make informed, legally sound decisions.

Training and Capacity Building

We also offer in-house training and workshops for finance and accounts personnel on:

VAT laws and updates

Practical use of Mushak forms

Record-keeping and documentation

Dealing with audits and notices

This ensures your team is well-equipped to handle day-to-day VAT operations.

Why Choose Income Tax and VAT Law Firm’s and SDTT ACADEMY for VAT Services?

Specialized Legal Expertise: We understand the legal depth of VAT matters.

End-to-End Support: From registration to appeal, we cover all aspects.

Proven Track Record: Trusted by SMEs, multinationals, and NGOs.

Personalized Attention: Tailored solutions that fit your business model.

Regulatory Foresight: Stay ahead of changes with timely updates.

Get in Touch

If your business needs reliable, professional, and legally sound VAT services in Bangladesh, don’t hesitate to contact Income Tax and VAT Law Firm’s and SDTT ACADEMY. Our dedicated team is ready to guide you every step of the way.

In Short View: 

Services:

☑️ BIN Registration and BIN Update without Penalty 
☑️ Proper VAT Calculation: In accordance with sub-section 1 of section 45 of the VAT Act 2012. And Value Added Tax and Supplementary Duty Rules, 2018
☑️ Rules for Filling the VAT Return form According to The Variation of The Activities of The Organization
☑️ VAT Return Preparation
☑️ Confidentiality
☑️ Information Sharing 
☑️ AIT Adjustment
☑️ VDS
☑️ Supplementary Duty
☑️ Input-Output Coefficient 4.3
☑️ Submission of VAT Rebate and VAT Return
☑️ VAT Return Form Fulfillment and Rules for Submission to VAT Office
☑️ Online VAT Return Submission
☑️ Manual VAT Return Submission
☑️ Case Hearing and  Settlement 
☑️ VAT Certificate
☑️ Above All, All Activities Related to Individual Income Tax

 

Price Offer: 

☑️ Negotiable: as per client Requirement’s.