Vat Registration Online

The procedure of registering for vat has changed from 2022. According to the prior value added tax or VAT registration system, you needed to visit the revenue offices. But after the announcement of vat registration online by the authority, you no longer need to visit any related office. You can now do everything online by visiting the government website of the National Board of Revenue (NBR). The official website address of the National Board of Revenue is www.nbr.gov.bd.

Why Vat Registration Online is Important?

No matter if it is online or offline, vat registration is important. One of the most crucial reasons for vat registration is that it is directly linked with the growth of the country. Not only that, but it is also good for every citizen as well. The government earns a large portion of its income through vat on different products and services.

After earning from this sector along with other sources, the government sanctions budget for different development projects. All the citizens of the country get benefited from these development projects directly or indirectly. So, vat registration online is very much important for the betterment of people of the country.

Vat Registration Online and Enlistment

It is not a matter of what type of business you do, how large or small your business size is, and so on, you have to register for vat for your business. Every business in the country needs to have a unique Business Identification Number (BIN). If a business wants to get a BIN, it needs to have a vat registration certificate.

 How to Apply for Vat Registration Online?

There is no fee to apply for vat registration online. But you need to meet some requirements to be entitled to vat registration. The most important part is that you need to provide appropriate and true information to support your application. Providing the right information will also reduce the delay in processing your vat registration process. It is to mention that not every business needs to pay the vat. It depends on the annual turnover of the company or business. A business with a turnover of less or equal to 30 lakh taka needs not to pay the vat.

On the official site of the National Board of Revenue, you will get a vat registration form. All you need to do is to fill-up the form by providing your real information. Though everyone will be able to apply for a BIN for free, not everyone will be entitled to a BIN. Only those who will get entitled will get and hold a BIN. Of course, you need to have some specific information to complete your free BIN application.

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Documents & Information Needed for Vat Registration Online

Different types of documents are required for vat registration online for different types of business. Below are the details of separate document necessity for different businesses:

Online VAT Registration for Proprietorship Business:

  • Name of the Proprietor
  • NID/ Passport
  • Name of Business
  • Business Address
  • Nature of Business
  • Bank Information
  • TIN Certificate

Online VAT Registration for Partnership Firm:

  • Name of Partnership Firm
  • Business Address
  • Nature of Business
  • Bank Information
  • TIN Certificate of Partnership Firm
  • Information of all partners including the portion of capital, NID/ Passport

Online VAT Registration for Limited Company:

  • Name of the Company
  • Business Address
  • Bank Information
  • Nature of Business
  • Incorporation Number
  • TIN Certificate of the Company
  • Information of all Directors’s including the percentage of share, NID/ Passport

Vat Rate In Bangladesh 2021-22 PDF

Value Added Tax or VAT is such an indirect tax which is paid by the consumer through a registered person. Value Added Tax or VAT on a particular goods or service is determined on the basis of adding actual level of value of the said goods or service adjusting input tax payable against the supplied goods or service.

Supposing a goods was purchased for Taka 1000 and it was sold at Taka 1500, in that case, an amount of Taka 130.43 was included as VAT for the purchase of Taka 1000 (Calculation: 1000×15/115); likewise, a VAT amount of Taka 195.65 shall be inclusive of Taka 1500, if the goods is sold at that price. (Calculation: 1500×15/115).

Actual addition will be Taka 500 if the goods is sold at Taka 1500 and as the seller had paid the price of the goods during purchase inclusive of the VAT he will pay the VAT at the actual level of addition at the stage of sale, that is on Taka 500, taking back the VAT paid by him at the stage of purchase.

Read more: Online Pay Fixation 2022 BD [বেতন নির্ধারণ প্রক্রিয়া]

What is the rate of VAT?

The standard rate of VAT is 15%. Applicable rate of VAT in case of import and supply is 15% and in case of export is 0%.

What are the latest rates of VAT under the purview of VAT procedure 1991?

Under the purview of VAT procedure 1991 the standard rate of VAT is 15%. According to the budget of the last Financial Year (2021-2022), apart from the standard rate, 10 lower rates are in place on the basis of reduced base price in case of some services e g 1 5% 2%, 2.5%, 4%, 5%, 5.5%, 6%, 7.5%, 9% and 10%.

What is Business Identification Number (BIN)?

Business Identification Number is the business identification number taken by an individual on the basis of turnover of his economic activities. This identification number can’t determine the nature and activities of the individual’s economic activities. It is a specific number of 9 digits by which a tax payer can be identified. A tax payer’s state of business affairs can be identified through this number from the website of the NBR.

Hopefully, you have got to know what you need to have for vat registration online. Even after reading our article, we will recommend you to visit the official website of National Board of Revenue to gather different information.

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