VAT Act, 1991

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VAT Act, 1991

Type: Law

Issuing Agency: National Board of Revenue (NBR)

Responsible Agency: National Board of Revenue (NBR)

Issuing Date: 01-07-1991

National Board of Revenue

Value Added Tax Act, 1991

This document outlines the detailed rules and regulation with regards to VAT – what it is, how to submit, who to pay, how much to pay etc.

Any registered company or any individual who is going to import or manufacture products with a goal to run the operation of a current business or, with an intention to expand it shall be considered accountable to pay VAT during any of these followings that happen in first place:

a. When the product is delivered

b. When the challan is delivered

c. When the product is used or provided to someone else for use

d. When the value is generated partially or to the full extend.

VAT will be paid by the importer in case of importing goods, by the manufacturer for locally produced goods, by the service provider in case of service provisioning, by the consumer in case of services provisioning beyond the geographical border of Bangladesh.

Following table depicts due penalties for number of wrong-doings in relation to this act:

Sl. No	Description	Penalties
1	In case of failure of registration wherever it deems necessary	Minimum BDT 10,000 and Maximum BDT 20,000
2	Failed to submit the return paper within the deadline	Minimum BDT 10,000 and Maximum BDT 20,000
3	Failed to inform the NBR officials in case of any changes in information of registration	Minimum BDT 5,000 and Maximum BDT 10,000
4	Failed to execute any order under the act 25	Minimum BDT 10,000 and Maximum BDT 30,000
5	Failed to preserve necessary accounts, electronic cash or point of sales software	Minimum BDT 20,000 and Maximum BDT 50,000
6	Violation of any clause of this act	Minimum BDT 10,000 and Maximum BDT 30,000