Beauty of VAT and SD Act 2012 & Rule 2016.

 

Chap.	Title	Section	Rule	Title	Related Form
01	Preliminary	1-3	1-2	Preliminary
02	VAT Registration and Turnover Tax enlistment	4-14	3-15	VAT Registration & Enlistment under Turnover Tax	2.1 to 2.5
03	Imposition of VAT	15-26	16-18A	Imposition of VAT: VAT Agent, Travel agent & Tour operator	3.1, 3.2, 3.3
04	Manner of VAT Collection	27-44	19-24	Value Added Tax Collection Method	4.1, 4.2, 4.3, 4.4, 4.5
05	Assessment of Net payable tax by the Tax payer & Payment	45-50	25-39	Determination and payment procedure of net tax by the tax payer, tax deducted at source and adjustment
06	Tax Invoice and other Documents	51-54	40-44	Accounting for Value added tax and Turnover Tax	6.1, 6.2, 6.2.1, 6.3, 6.4, 6.5, 6.6, 6.7, 6.7, 6.8, 6.9, 6.10
07	Imposition and Collection of Supplementary Duty	55-62	45	Adjustment of Supplementary Duty	7.1
08	Imposition and Collection of Turnover Tax	55-63	46	Adjustment of Turnover Tax
09	Filling of Return and Amendments thereof		47-51	Submission of Return and Correction	9.1, 9.2, 9.3, 9.4
10	Carry Forward and Negative  net amount and Refund	69-72	52-57	Brought forward and Refund Negative Net amount	10.1, 10.2, 10.3
11	Tax Determination by the Commissioner	73-77	57A-58	Tax Determination by the Commissioner : Negative of Tax advantage	11.1, 11.2
12	Value Added Tax Authority	78-89A	59-65	Value Added Tax Authority	12.1, 12.2, 12.3, 12.4, 12.5, 12.6, 12.7, 12.8, 12.9, 12.10, 12.11, 12.12, 12.13
13	Audit & Investigation	90-94	66-67	Audit & Investigation	12.1, 13.2, 13.3
14	Recovery & Arrear tax	95-106	68-94	Realization of outstanding  Taxes	14.1, 14.2, 14.3, 14.4, 14.5, 14.6, 14.7, 14.8, 14.9, 14.10, 14.11, 14.12, 14.13, 14.14
15	Maintenance of Forms, Notices and Records	107-110	95	Forms, Notices and Preservation of Records
16	Offence Trail and Punishment	111-120	96-97	Offence, Trail and Punishment	16.1, 16.2
17	Appeals & Revisions	121-125	98-108	Appeal & Revision	17.1, 17.2, 17.3
18	Miscellaneous	126-139	109-119	Miscellaneous	18.1, 18KA, 18.2, 18.3, 18.4, 18.5, 18.6

Rates of VAT

 

Particulars	Rate of VAT
Standard Rate	15%
Trading VAT	5%
Reduced Rate as per 3rd Schedule	5%, 7.5%, 10%
Medicine at local Supply	2.4%
Petroleum Materials elements	2%
Newsprint (MT), Cotton (kg), Bricks(k), Scrap/Ship Scrap (MT), MS Products (MT), SIM Card	Specific Rate
Export Level/Stage or Deemed Export	0%
1st Schedule & SRO-144 List of goods and Services	Exempted
1st Schedule	Exempted at all levels
2nd Schedule-	Supplementary Duty + 15% VAT
3rd Schedule	Reduced Rate
SRO-144	Exempted at different stage

Three schedules of New VAT Law

Schedule	Subject Matter	Types of subject matter
1st Schedule	List of Goods and Services exempted from VAT	Part-1 : Goods Part-2 : Services It includes all of the exempted followings- * Basic services for livelihood *Social services *Cultural services *Financial services *Transportation services *Personal services *Other services
2nd Schedule- Supplementary Duty + 15% VAT	Supplementary Duty imposable goods and Services	Table-1 : Goods : SD at Import stage Table-2 : Goods : SD at Supply stage Table-2 : Services : SD at Service/Supply stage
3rd Schedule	List of goods and Services where reduced and specific VAT rate applicable	Table-1 (Part A & B): Goods and Services at 5% Table-2 (Part A & B): Goods and Services at 7.5% Table-3 (Part A & B): Goods and Services at 10% Table-3 (Part A & B): Goods and Services at specific rate
VAT exempted by SRO	SRO 144-law/2020/105/MUSHAK, dated 11-06-2020 & Others	Table-1 : Goods : Import Stage Table-2 : Goods : Import and Manufacturing Stage Table-3 : Goods: Manufacturing stage Table-4 :  Service stage Table-5 : Trading  stage

 

What is Value Added Tax (VAT)?

 Value Added Tax (VAT), known in some countries as Goods and Service Tax (GST).

* It is an indirect tax  charged on the sale of goods and services.

*It is a tax on the purchase price.

*From the perspective of the buyer , it is a tax on the purchase price.

* From that of the seller, it is a tax only on the value added to a product or material or service.

* The added to a product by  or with a business is the sale price charged to its customer, minus the cost of materials and taxable inputs

 

Value Added Tax  = output Tax - input tax

Value Added Tax = Tax on  ( output cost)- Input cost.

 

Customs, VAT and Income Tax Acts and Rules

 

 Customs:

* Customs Act, 1969

VAT:

1. Value Added Tax and Supplementary Duty Act, 2012

2. The Excise & Salt Act, 1994

3.Value Added Tax and Supplementary Duty Act, 2016

Income Tax :

* Income Tax Ordinance, 1984

* Income Tax Rules 1984

 

VAT Introduced in Bangladesh

 ** The excise  and Salt Act 1994.

** VAT was introduced in 1991.

** The Value Added Tax Act 1991.

** The Value Added Tax Rules 1991 starts journey on 1st July 1991.

** Background of new VAT Law.

** The Value Added Tax and Supplementary Duty Act, 2012.

** The Value Added Tax and Supplementary Duty Rules, 2016.

** New VAT has been implemented from 1st July 2019.