In Bangladesh, the sales of goods and services are subject to a consumption tax known as the Value Added Tax (VAT). Businesses that are registered to do business in the country are required to pay value-added tax, which is collected by the National Board of Revenue (NBR). Every single company operating in Bangladesh is obligated to acquire a Business Identification Number, also known as a BIN. To qualify for that, each and every company needs to have a VAT registration certificate.
In order to maintain routine business operations, such as participating in tenders, banking activities, and exporting and importing goods, obtaining a Business Identification Number and registering for VAT is required. The Customs, VAT and Excise Department of the National Board of Revenue (NBR) is in charge of administering and enforcing the value-added tax (VAT). To receive a VAT Registration Certificate, a company’s annual revenue must be more than a specified level. This requirement makes the certificate necessary. This certificate provides as documentation that a business is registered for VAT, enabling the business to comply with legal obligations and engage in transactions with other businesses that are also registered.
Importance of VAT Registration Certificate
If a company does not have a VAT Registration Certificate, they could be subject to fines or possibly legal action. In order to receive a VAT Registration Certificate, one must first complete the registration process and then provide all of the required documentation to the local VAT office. It is essential to make certain that all of the requirements are satisfied, and that the procedure is carried out in the appropriate manner, in order to avoid any problems in the future. This article will provide assistance to help businesses successfully finish the process of obtaining a VAT Registration Certificate in Bangladesh, and will describe the step-by-step method that must be followed in order to obtain this certificate.
Eligibility For VAT Registration
Companies that satisfy the prerequisites for being able to register for VAT ought to do so in accordance with the prescribed protocols. The annual turnover of a firm is one of the factors that determines whether or not it is required to pay VAT. This is one of the eligibility requirements. If a company’s annual sales are less than thirty million taka, the company is exempt from paying VAT. If, however, such revenue is between BDT 30 and BDT 80 lakh, the corporation is required to pay a Turnover Tax of 3%. In addition, regardless of their yearly turnover, businesses that engage in importing, exporting, or the provision of services are mandated to register for VAT. Companies that provide services such as consulting, legal assistance, accounting, or information technology are included in this category.
Before applying for a VAT registration certificate, businesses should double-check that they possess all required documentation. During the review process, the National Board of Revenue (NBR) may ask for further paperwork or details. Documents needed to start a business typically consist of but are not limited to:
- A copy of the trade license.
- A copy of the Tax Identification Number (TIN) certificate.
- a copy of the business’s or the owner’s bank statement to confirm the financial standing of the company.
- A copy of the business owner’s or authorized signatory’s national ID card or passport.
- Certificate of importation/certificate of exportation (if applicable).
- Passport-size photographs of the business owner or authorized signatory.
- Deed of Agreement (A copy of the rental agreement or ownership papers for the business premises.)
Instructions for Applying for a Value-Added-Tax Number
Once all of the necessary paperwork is in order, moving forward is simple. The sequence of the Nex actions is as follows:
The NBR (National Board of Revenue) provides businesses with a VAT registration application form. Your company’s name, address, contact info, business activities, and finances should all match the information on your National Identification document.
Include all supporting documents and a completed registration form when sending them to NBR. You can submit your application to the city’s VAT office either in person or online.
The NBR will look over the application and may ask for more paperwork if they feel it’s required. Once the application is accepted by the NBR, a VAT registration certificate will be issued.
The certificate of VAT registration must be publicly displayed within the establishment.
To begin remitting VAT to the NBR on behalf of the government, businesses must first get a VAT registration certificate.
We are able to draw the conclusion that businesses that operate within the boundaries of Bangladesh and are subject to the provisions of the VAT Act 1991 must be in possession of a valid VAT registration certificate. If you follow the guidelines mentioned above and complete them in their entirety, acquiring a VAT registration certificate will be a straightforward process. Additionally, companies need to keep in mind that in order to comply with VAT requirements, they are required to keep correct records of the sales and purchases made by their business. Obtaining a VAT registration certificate enables businesses to legally engage in a variety of various sorts of operations, provide them with access to certain opportunities, and contribute to the growth of the national economy.