VAT (Value Added Tax)
VAT is an indirect tax levied on the value added to goods and services at each stage of production or distribution. In Bangladesh, VAT is governed by the Value Added Tax and Supplementary Duty Act, 2012. It is a key source of revenue for the government and applies to most businesses operating in the country.
A BIN is a unique 13-digit number issued by the National Board of Revenue (NBR) to businesses registered under the VAT system. It is mandatory for businesses with an annual turnover exceeding a specified threshold to obtain a BIN and comply with VAT regulations.
Successful Projects
Quality Customers
Trusted Partners
Why VAT/BIN Matters:
VAT and BIN ensure legal compliance, boost credibility, provide tax benefits, and support economic growth, making them essential for businesses in Bangladesh.
Registering for VAT and obtaining a BIN is mandatory for eligible businesses under Bangladeshi law. Non-compliance can result in penalties or legal action.
VAT is a significant source of government revenue, contributing to national development and infrastructure projects.
A BIN enhances the credibility of a business, making it easier to engage in formal trade and secure contracts.
Registered businesses can claim input tax credit, reducing the overall tax burden by offsetting VAT paid on purchases against VAT collected on sales.
VAT promotes transparency in business transactions, reducing the scope for tax evasion.
TDS Calculator on Salary
Employers must deposit the TDS by the 25th of the following month as per the Income Tax Act 2023.
VAT/BIN Registration
To register for VAT and obtain a BIN in Bangladesh, businesses must submit those documents to the NBR:
Application Form
Trade License
Bank Statement
Import/Export Certificate
Owner’s Photo
Proof of Address
Partnership Deed
Factory License
TIN Certificate
Certificate of Incorporation
MOA and AOA
VAT Returns (if already registered)
Embracing VAT/BIN for Business Success in Bangladesh
For entrepreneurs and business owners, understanding and adhering to VAT/BIN regulations is a step toward building a transparent, trustworthy, and competitive enterprise. Whether you’re a small business or a large corporation, staying compliant with VAT laws is essential for long-term success in Bangladesh’s dynamic market. Always consult the National Board of Revenue (NBR) or a tax professional like E-Lawyers for the latest updates and guidance tailored to your business needs.
