Presentation on changes in vat20 21

Important changes introduced by the
Finance Act 2020 in the VAT & SD Act,
2012

This presentation covers implications of the :
• Important changes brought about by the Finance Act, 2020 in the Value Added Tax &
Supplementary Duty, 2012 (hereinafter mentioned as VAT & SD Act, 2012);
• Contemporary Statutory Regulatory Orders related with VAT;
• Contemporary General Orders related with VAT.
Scope of this presentation

Changes Implications
New Previous Any service supplied from
outside Bangladesh would
come under the ambit of the
definition of imported service.
Previously, services rendered
from outside Bangladesh to
persons registered or eligible
for registration came under the
definition.
Any services
rendered from
outside
Bangladesh
to
Persons
registered or
eligible for
registration
Section 2(17)
Imported service
Changes in statutory definitions

A definition of ‘Input’ has been introduced. There
was no such definition previously. There was an
explanation from NBR about ‘input’.
Most importantly, the new definition of ‘Input’
includes machineries which was not considered as
input under the explanation provided by NBR. Labor
has been excluded from the definition.
Taxpayers would not
be able to claim
credit for tax paid on
any item which does
not fall within the
ambit of the
definition.
Section 2(18A)
Input
Changes in statutory definitions cont……..

‘Input’
means
Packaging
materials
All sorts of
raw
materials
Laboratory
reagent
Laboratory
accessories
Laboratory
equipment
Any
materials
used as
fuel
Machinery
and spare
parts
Service

But ‘Input’ does not include:
1. Labor, land, building, office equipment and fixtures and balancing, modernization,
replacement, expansion, renovation and repair of any building or structure or establishment;
2. All kinds of furniture, office supplies, stationery, refrigerator and freezer, air-conditioner, fan,
lighting equipment and generator purchase or repair;
3. Interior design, architectural planning and design;
4. Vehicle rental and leasing;
5. Travel, hospitality, employee welfare, development work and any related goods and services; and
6. Rent of business premises, office, showroom or similar area, whatever the name may be.
Exception: In the case of the business conducted by a trader (mentioned in paragraph 3
of the Third schedule of the VAT and SD Act, 2012), goods purchased, acquired or
otherwise collected for sale, exchange or imported for subsequent transfer shall be
considered as input.

Tax paid on acquisition of
immovable property has been
excluded from the definition.
No input tax credit will be available on
acquisition of immovable property.
Tax determination has been
defined as determination of tax
by “Appropriate officer” under
Chapter 11 of the VAT law.
It is actually an alignment of the definition
with the changes in Section 73 and 86 of the
VAT law. Previously, only the Commissioner
was vested with the responsibility of tax
determination.
Section 2(19)
Input tax
Section 2(28)
Tax
determination

Companies incorporated outside
Bangladesh has been included in the
definition.
Liaison and branch offices of companies
incorporated outside Bangladesh would
be considered as company and VAT
withholding entities since a company is
considered as a VAT withholding entity.
The word ‘Challan’ has been
replaced with “Challan Patro”.
This change has aligned the definition
with rest of the law.
Section 2(40)
Challan Patro
Section 2(38)
Company

Provision has been brought about to remove
the implication of registration threshold for
mandatory VAT registration irrespective of
turnover under Section 4(2) (d) of the VAT &
SD Act, 2012 for specified suppliers of goods
and services and persons involved in
economic activities in any specified
geographic areas.
Registration threshold will not
debar the effectiveness of the
provision of mandatory VAT
registration irrespective of
turnover as set out in Section
4(2)(d) of the VAT & SD Act,
2012.
Section 2(57)
Registration
threshold

New Previous Supply of any goods or service
intended for consumption
outside Bangladesh in
exchange of foreign currency
will be deemed as export.
International organizations, Joint or any similar
initiative for property development and Other
business organizations” have been inserted in
the list of entities considered as ‘Person’.
Newly inserted parties would
be considered as ‘Person’ and
come under VAT net.
Supply of any goods
or service
Supply of only input
of goods or services
Intended for consumption outside
Bangladesh in exchange of foreign
currency
Section 2(62)
Deemed Export
Section 2(74)
Person

New Previous Any supply (i.e. goods or
service) to outside Bangladesh
would be considered as
export.
The words of “Combined tax invoice” has
been deleted from the definition of
“Certificate of VAT deduction at source”.
The definition of “Certificate
of VAT deduction at source”
has been aligned with the
provisions Section 53 of the
Act.
Section 2(82)
Export
Any supply outside
Bangladesh
Any supply of goods
outside Bangladesh
‘Goods’ have been deleted from the
definition.
Section 2(92)
VAT deduction at
source certificate

Inclusions:
1. Adjustment of input tax on export; and
2. Issuance of credit notes
Section 2(103)
Decreasing
adjustment
Modifications:
1. Adjustment for annual recalculation and audit
Deletion:
1. Adjustment to telecommunication service providers;
2. Purchase of secondhand products for resale; and
3. Indemnity payment under an insurance policy.

Section 5(1)
Registration
NBR has been empowered to prepare Rules for-
1. Obtaining central registration; and
2. Payment of tax centrally.
Section 12
Suo moto registration
Concerned officers instead of the Commissioner would
be allowed to give suo moto VAT registration or
turnover tax enlistment.
Section 31(2)
Advance tax
Rate of advance tax has been re-
fixed as 4% for import of input for
production of goods and 5% in any
other cases.
New Previous
Rate of advance tax was 5% of
the VAT imposable base value of
the taxable import of inputs or
goods.
Implications of important changes introduced in
the VAT & SD Act, 2012

Section 31(3)
Advance tax
Change
The time period for decreasing adjustment of advance tax paid at import
stage has been extended by two months.
Implication
Now, taxpayers would be allowed to make decreasing adjustment in the
period of tax payment and 04 (four) subsequent tax periods.

Section 32(2)
Value of
imported
service
Implication
The consideration for imposition of VAT on imported service would be the value
of the service and if the service renderer and service receiver are associated
parties, the fair market price. Previously, there was a provision to consider the
value as inclusive of VAT for unassociated parties.
Section 33(2)
Payment of
tax liability
Implication
The time of payment of VAT liability for supply of progressive or periodic supply
of water, gas and electricity has been extended from 60 days to 90 days of
issuance of tax invoice.

Section 46(1)(c)
Input tax credit
Change
The timeline for claiming input tax credit has been extended by two months.
Implication
Taxpayers would be allowed to claim input tax credit in the period of purchase or
collection of input and 04 (four) subsequent tax periods.
Purchase and sales register have been inserted after Purchase register in Section 46(1)(e).
Implication
Traders have to mention information of purchases in the “Purchase and sales register” to
avail the benefit of input tax credit.
Change
Section 46(1)(e)
Input tax credit

Implication
Cancel
incremental
input tax
credit
in
case
Input price
increases by
more than
7.5% but
No revised
input-output
co-efficient is
provided for the
same
Section 46(1)(n)
Input tax credit

Section 46(3)(d)
Input tax credit
Implication
Implication
Provision has been brought about to consider Treasury challan as a legitimate instrument
for claiming input tax credit against imported service.
Invoices raised by the respective agencies have been considered as ‘Challan Patro’ for
claiming input tax credit against supply of gas, water, electricity and telephone.
Section 46(2)(d)
Input tax credit
Implication
Input tax credit will be allowed up to 80% on expenditure incurred for transportation of
goods.
Section 46(3)(e)
Input tax credit

Section
48
Changes
Section 48 has been bifurcated between 02 (two)
subsections giving rise to increasing and
decreasing adjustments.
Implications
All the circumstances resulting increasing adjustments
and decreasing adjustments as defined in Section
2(71) and Section 2(103) have been replicated without
any editing. Allowing decreasing adjustment for VAT
credit note and input tax paid by exporters are the
most important items to be mentioned.
Adjustments

VAT deduction
at source
VAT
deduction
at source
Section
49(1)
Section 49(1) has been given supremacy over the
provisions of Section 33. As a result, procedure, time
and rate of tax payment regarding deduction of VAT
at source would prevail over general provisions of
tax payment.
Changes and
Implications

VAT deduction
at sourceVAT
deduction
at source Section
49(5)
A provision of non-deduction of VAT at source from
subcontractors, agents and any other service
rendering person appointed to deliver a part of a
project has been included in the VAT law. This VAT
benefit is subject to availability of evidence of VAT
collection/deduction by the main service receiver.
There was a similar provision in the VAT Act, 1991
but not in the VAT & SD Act, 2012.
However, the new provision states that the benefit
will not be applicable for procurement goods in a
project.
Changes and
Implications

VAT deduction
at sourceSection
50(3)
Collection of certificates from withholding entities
has been made a mandatory requirement for
claiming decreasing adjustment for VAT deducted at
source.
Changes and
Implications
VAT
deduction
at source
Section
53
VAT withholding entities have to issue certificate of
VAT deduction at source to the supplier in
accordance with the procedure fixed by the National
Board of Revenue.

Filing of VAT
return
The last date for submission of VAT
return has been mentioned as the
working day next to the 15th day of
the month in case the 15th day of the
month is a Government holiday.
Late filing of
VAT return
NBR has been empowered to extend time for
submission of VAT return without fine and
penalty in public interest upon receipt of
approval from the Government due to
natural disaster, pandemic and war. NBR will
be able to provide order with retrospective
application.
Section
64(1)
Section
64(1A) &
(1B)

Section
68
Carry forward and
refund of negative
balance
The provisions of Section 68 allowing carry forward of net negative balance
and refund of the same have been simplified. The negative balance has to be
carried for six tax periods for adjustment with net VAT liability. Negative
balance remaining after six tax periods will be refundable within 03 (three)
months of receiving application in prescribed methods and conditions.
Refund will not be allowed if the balance is not more than BDT 50,000. In
such a case, it has to be carried forward till reduction to zero.
The opportunity of refund has been opened for all. Previously, refund was
not allowed to construction contractors, real estate, land or property
development organizations.
Changes
Implication
s

Tax Refund
Section 71
Director General or the
Commissioner will be
entitled to give refund of
VAT paid by the
diplomatic and
international
organizations.
Tax determination
Section 73
‘The Appropriate officer’ authorized to
make adjudication has been
empowered to determine tax in
addition to the Commissioner. A VAT
officer not below the rank of Assistant
Commissioner has been empowered
to determine the tax liability in the
case of detection of irregularity in
claiming input tax credit and
decreasing adjustment.

Negation of tax
benefit
Section 76
Provisions related
to Commissioner’s
power to negate a
tax benefit in a
scheme has been
rephrased for
removal of
ambiguities.
Power to enter and
search
Section 83(4)
‘Revenue Officer’ has
been authorized to
inspect production and
supply/business premise
of a VAT payer within his
jurisdiction and audit the
stocks, services, inputs
and VAT accounts.
Section 78
VAT authority
Director General (DG) of
Duty Exemption and
Drawback Office (DEDO) has
been included with the
ambit of VAT authority and
its officers. DG, DEDO would
be able to perform the
functions of refund to
diplomatic and international
organizations.

Provision for adjudication without notice and hearing has
been enacted for self-acknowledgement of offence by the
taxpayer.
An Assistant Commissioner may be appointed as ‘Debt
Recovery Officer’. Previously, officers below the rank of
Deputy Commissioner could not be so appointed.
Section 86(3)
Adjudication
Section 95(1A)
Debt recovery

Appeal to Commissioner
of (Appeals)
The statutory deposit
requirement for filing appeal
to the Commissioner of VAT
(Appeals) has been
increased from 10% to 20%.
This provision would be an
extra burden to the
taxpayers.
The statutory deposit
requirement for filing appeal to
the Appellate Tribunal has
been increased from 10% to
20%. However, deposit would
not be required for filing
appeal against the Order of the
Commissioner of VAT
(Appeals).
Appeal to the Tribunal
Section
121(2)
Section
122(2)

Implications of important changes
introduced in the VAT & SD Act, 2012
The Government has been empowered to extend timeline
for disposal of appeals by the Appellate Tribunal in public
interest due to natural disaster, pandemic and war.
The Government will be able to give the order for extension
of time retrospective effect.
Section
122(2)

Implications of important changes
introduced in the VAT & SD Act, 2012
Section
126
The power of Government of Bangladesh and National
Board of Revenue to give exemption from advance tax
in addition to VAT and Supplementary Duty has been
specifically mentioned.
Power to give
exemption

First
Schedule
Second
Schedule
Second
Schedule
Amendment
in the
Schedules
VAT exemption under the
1st Schedule of the VAT &
SD Act, 2012 has been
extended to supply of soil,
sale of books, activities
related to buy and sale of
shares and air ambulance
services whereas
exemption on supply of
natural honey has been
withdrawn.
The table depicting Supplementary Duty (SD) rates on
import goods under specific HS Codes have been
substituted. SD rate on import of Sugar confectionery
(including white chocolate), not containing cocoa, put
up for retail sale) under HS Code 1704.10.10 and
1704.90.10 has been increased from 20% to 45%
whereas SD rate on import of Plaster Boards and sheets
(6809.11.00 and 6809.19.00) has been fixed as 10%.
SD rates on services rendered by SIM/RIM card in
mobile phone, services of BRTA and lessor of chartered
airplanes and helicopters have been increased by 5%.
VAT Exemption Supplementary duty

First
Schedule
Second
Schedule
Supplementary duty at supply stage
Heading H.S. Code Description of Goods New SD rate Previous rate
24.02 2402.20.00 Cigarettes containing tobacco 65% 55% to 65%
2402.90.00 Hand-made Bidi (with or without filter) 40% 35%
24.03 2403.99.00 Jorda 50% 50%
2403.99.00 Gul 50% 50%
69.10 Related HS
Codes
Ceramic sinks, basins, pedestal basins,
Commode and its parts, any type of toilet pan
and other sanitary fittings and fixtures.
10% 0%
Related HS
Codes
Ceramics bathtub and Jacuzzi, shower, shower
tray
30% 30%

First
Schedule
Third
Schedule
Third
Schedule
Amendment
in the
Schedules
Reduced rate of VAT on supply of potato flacks, maize (corn)
starch, fabrics made from man made fiber (except some areas),
router, loaded PCB, printed circuit board have been fixed as 5%.
Reduced rates of VAT on “Furniture distribution center”
(S024.20) and “Air-conditioned launch service” (S036.20) have
been increased from 5% to 7.5% and 10% respectively.
Specific amount of tax on supply of cotton yarn and yarn made
of artificial and other fiber (having prevalence of artificial fiber)
has been fixed as BDT 3 and BDT 6 per KG respectively.
Reduced rates & Specific amount of tax

Changes in VAT deduction at source
SRO No. 149-AIN/2020/110-VAT dated
11 June 2020 regarding VAT deduction
at source has replaced the previous
SRO No. 187-AIN/2019/44-VAT dated
13 June 2019.
SRO No. 149 has been further
amended by SRO No. 180 No.-180-
AIN/2020/120-VAT dated 30 June 2020
SRO No. 149-
AIN/2020/11
0/VAT dated
11 June 2020
SRO No. 187-
AIN/2019/44-
VAT dated 13
June 2019

A withholding entity is
required to deduct VAT at
source from payment for
supply of goods adopting
reduced VAT rates or specific
amount of VAT as mentioned
in the Third Schedule of the
Act.

A withholding entity is required to
deduct VAT at source from the
payment for certain services at
specified rates irrespective of
availability of tax invoice and the
VAT rate adopted. The list of
services under mandatory
deduction at source has been
provided in the next slide to this
presentation. Deduction would
not be applicable for services not
mentioned in the list if the service
renderers provide tax invoice.
Taxpayers within
the jurisdiction of
VDS and paying
tax @15% would
face a tremendous
working capital
problem.
Services having
reduced rate of
VAT but not
falling within the
list would not
come under VAT
deduction at
source.

S. L. Service Code Description Rate of deduction
1.
S001.10 Air-conditioned hotel 15%
S001.20 Air-conditioned restaurant 15%
S001.10 Non air-conditioned hotel 7.5%
S001.20 Non air-conditioned restaurant 7.5%
2. S002.00 Decorators and caterers 15%
3. S003.10 Motor vehicles garage and workshop 10%
4. S003.20 Dockyard 10%
5. S004.00 Construction company/firm 7.5%
6. S007.00 Advertising agency 15%
7. S008.10 Printing press 10%
8. S009.00 Auctioneer 10%
9. S010.10 Land development organization 2%
10. S010.20 Building construction organization
1-1600 sq. feet 2%
Over 1600 sq. feet 4.5%
Registration for any size 2%
List of services under mandatory deduction at source

11. S014.00 Indenting organization 5%
12. S015.10 Freight forwards 15%
13. S020.00 Survey firm/agency 15%
14. S021.00 Plant and capital machinery rent provider 15%
15. S024.00
Furniture
sales
centre/seller
of furniture
(a) At manufacturing stage 7.5%
(b) At showroom/At marketing stage (subject to
availability of challan re payment of VAT @ 7.5%
at production stage, otherwise 15%)
7.5%
16. S028.00 Courier and express mail service 15%
17. S031.00
Individuals, organizations or associations engaged in repairing or
servicing of taxable goods in exchange of consideration
10%
18. S032.00 Consultancy and supervisory firm 15%
19. S033.00 Lessor (Izaradar) 15%
20. S034.00 Audit and accounting firm 15%

21. S037.00 Procurement provider 7.5%
22. S040.00 Security services 10%
23. S043.00 Provider of programs that broadcast through television and online 15%
24. S045.00 Legal advisors 15%
25. S048.00 Transport contractor
(a) For transports of petroleum products 5%
(b) For transport of other products 10%
26. S049.00 Rent-a-Vehicle 15%
27. S050.10 Architect, interior designers or interior decorators 15%
28. S050.20 Graphic designer 15%
29. S051.00 Engineering firms 15%
30. S052.00 Sound and lighting instrument rent provider 15%
31. S053.00 Participants in board meetings 10%
32. S054.00 Advertisement broadcasting agency through satellite channel 15%
33. S058.00 Renter of chartered planes or helicopters 15%

34. S060.00 Purchaser of auctioned goods 7.5%
35. S065.00 Clearing and maintaining agencies of building, floor and premises 10%
36. S066.00 Lottery ticket seller 10%
37. S067.00 Immigration advisor 15%
38. S071.00 Program organizer 15%
39. S072.00 Human resource supplier or management organization 15%
40. S099.10 Information technology enabled services 5%
41. S099.20 Other miscellaneous services 15%
42. S099.30 Sponsorship services 15%
43. S099.50 Credit rating agency 7.5%

VAT deduction at source (VDS) management for
service renderer
Step-1
• An audit & accounting
firm issues Tax Invoice (i.e.
Form VAT 6.3) to its clients
for the professional
services rendered.
Step-2
• Tax (VAT) payment @ 15% by
the audit & accounting firm
at the time of submission of
monthly VAT return.
Step-3
• The audit & accounting firm
receives professional fee
from its clients with the tax
(VAT) amount.
Existing mechanism: Hypothetical example for an audit and accounting firm

VAT deduction at source (VDS) management for
service renderer
New mechanism: Hypothetical example for an audit and accounting firm
Step-1
The audit &
accounting firm
issues Tax Invoice
(Form Mushak-
6.3) to its clients
for the
professional
services rendered.
Step-2
Tax (VAT)
payment @ 15%
by the audit &
accounting firm
at the time of
submission of
the VAT return.
Step-3
The audit &
accounting firm
receives
professional fee
from its clients
after deduction of
the tax (VAT)
amount.
Step-4
The audit & accounting
firm collects the VDS
certificate (Form Mushak-
6.6) from its clients and
makes a decreasing
adjustment based on the
same in its monthly VAT
return.
Minimize time gap for Efficient working capital management

Changes in VAT deduction at source for service receiver
VAT
deduction
source
Deducted VAT has to be
deposited to the
Government exchequer
within 15 days of
payment to supplier.
Current provision of
depositing VDS by
making increasing
adjustment in VAT return
has been repealed.
Certificate of
deduction in Form
6.6. is to be issued
within (03 three)
working days of
depositing the VAT
deducted at source.
Copy of
certificate is
to preserved
for 05 (five
years).

An increasing adjustment is
to be done for the VAT
deducted at source from the
vendors. The amount of VDS
already deposited to
Government treasury is
adjustable against the net
VAT payable of the
concerned tax period.
This approach appears
to be contradictory
with the provision of
Section 45 and Section
49(3)(a) of the VAT &
SD Act, 2012.

In the case of payment
of fees to non-residents
staying outside
Bangladesh by an
unregistered person.
The concerned bank will deduct VAT
@ 15% while making payment and
deposit the same to the government
exchequer mentioning the code of
the Commissionerate where the bank
is registered.

In the case of
payment of fees
to non-residents
staying outside
Bangladesh by
registered person
The concerned
bank will not
deduct VAT at
source if the
registered person
can provide copy of
treasury challan
evidencing the due
VAT payment.
In the absence of proper treasury
challan or under payment, the bank
will deduct the applicable VAT at
source and deposit the same to
Government exchequer mentioning
the concerned Commissionerate
code.

Hypothetical calculation of net VAT payable amount in VAT return (Mushak- 9.1)
Particulars SL
Before the
new SRO
After the
new SRO
SUPPLY - OUTPUT TAX 1
Sales BDT 1,500,000 @ 15% VAT 225,000 225,000
PURCHASE - INPPUT TAX 2
Purchase BDT 2,000,000
Input tax credit 220,000 220,000
INCREASING ADJUSTMENTS (VAT) 3
VAT Deducted at Source from the payment of vendors/clients 270,000 270,000
VAT on office rent 30,000 30,000
300,000 300,000
DECREASING ADJUSTMENTS (VAT) 4
VDS certificate (Mushak-6.6) received from vendors/clients 30,000 30,000
NET TAX CALCULATION (5=1-2+3-4) 5 275,000 275,000
ACCOUNTS CODE WISE PAYMENT SCHEDULE (TREASURY DEPOSIT) 6
For 2019-2020 (Net tax amount shall be deposited into the government treasury before submitting VAT
return).
275,000
For 2020-2021 (Here registered person shall deposit the amount of VAT deducted at source to
government exchequer by treasury challan. The registered person can adjust the deposited VAT
amount with the net VAT payable.)
300,000
CLOSING BALANCE (7=5-6) 7 - (25,000)

No VDS for supply of medicines from warehouse and depo
Medicine manufacturers pay the VAT applicable at
manufacturing and trading stage at the time of supply after
manufacturing stage.
As such, there would not be any VDS if medicine is supplied
from the warehouse or depo of the medicine manufacturer.
General Order No. 12/VAT/2020 dated 11 June 2020

Implications of important changes in the
the VAT & SD Rules, 2016
Rule 19 (3)
Refund of Advance tax
Rule 21
Input-output Co-efficient
Application for refund of
advance tax has to be filed
within 120 days of tax
payment instead of previous
60 days.
Declaration will not be
required for
exportable/exported goods.

The Value Added Tax & Supplementary Duty Rules, 2016 has been amended by
the following SROs:
SRO No.-142-AIN/2020/103-VAT dated 11 June 2020;
SRO No.-179-AIN/2020/179-VAT dated 30 June 2020

Rule 24A
Disposal of unused/useless inputs
Application for disposal of
unused/useless inputs is to be filed with
the Divisional Officer in prescribed form
VAT 4.4. Divisional office is to give
decision within 15 working days and
send a report to the Commissioner
within 07 (seven) days. Increasing
adjustment is to be done for the input
tax credit claimed against disposed of
inputs in the next tax period.
Newly
Inserted

Disposal of
unused/
useless Input
Implications
Application for disposal of goods damaged or destroyed in accident
has to be filed with the Divisional officer in Form VAT 4.5 within 02
(two) days of accident. The Divisional officer will determine the
supply value and the tax payable, if any, on the damaged or
destroyed goods and give decision within 30 days of receiving the
application.
Increasing adjustment is to be done for input tax credit taken on
totally destroyed goods. In the case of damaged or destroyed goods
having supply value, increasing adjustment is to be done in
accordance with the proportion of supply value determined by the
Divisional officer and the fair value of the goods damaged.
Rule 24BRule 24B
Disposal of goods
damaged or
destroyed in
accident
Newly Inserted

Application for disposal of waste and byproduct has to be
filed with the Divisional officer by Form VAT 4.3. Valuation of
waste and byproducts has to be done in accordance with
Fair Value Rules, 2019 and other procedural formalities have
to be ensured.
Where the organizations want to get rid of wastage and
byproducts having nugatory value, application of
sophisticated fair value rules and compliance with other
strict procedural formalities do not appear cost effective for
the taxpayers.
Rule 24C
Disposal of waste
and byproducts

Rule 40 (1C)
Tax Invoice
Rule 40 (7)
Tax Invoice
Rule 61 (5)
Search and Seizure
Nature and number of
vehicle is to be mentioned
in the tax invoice. The
Form of tax invoice (i.e.
Form VAT 6.3) has been
revised accordingly. The
original tax invoice is to be
carried with the vehicle at
the time of transportation
of the goods.
NBR has been
empowered to
declare bill or invoice
issued by any
registered person in
their own format as
tax invoice by
notification in
Government Gazette.
The concerned officer
has to give primary
report and final report
to the Commissioner
within 03 (three) and
15 (fifteen) days of
seizure respectively.

Rule 109
Rule 110
Rule 111
Rule 109 has been replaced providing detailed
guidelines for awarding certificate of VAT
consultant. Application fee has been fixed as BDT
5,000. Prequalification criteria have been fixed as
citizenship of Bangladesh, 25 years’ of age at the
date of application and certificate of graduation
or equivalent from any recognized university.
VAT
Consultant

The registered or enlisted person has to apply to the
Divisional Officer before 48 hours of refraining from
supply. The Divisional officer or officer authorized in this
behalf will conduct inspection of stock within 24 hours of
being informed. The person has to inform the Divisional
office in the working day before resuming the supply.
Rule 118B
Refraining from
supply
Newly
Inserted

Newly Inserted
Implications
The registered or enlisted person has to apply to
the Divisional Officer before 48 hours of
refraining from supply. The Divisional officer or
officer authorized in this behalf will conduct
inspection of stock within 24 hours of being
informed. The person has to inform the
Divisional office in the working day before
resuming the supply.
Some forms have been replaced
Form No. Particulars
4.4 Application for disposal of unused/useless inputs
4.5 Application for disposal of damaged and destroyed goods
6.2.1 Purchase and sales register for traders
6.3 Tax invoice
6.5 Transfer of goods by centrally registered organizations
6.7 VAT credit note
6.8 VAT debit note
9.2 Turnover tax return
18.1 Application for VAT consultant license
18.1A Awarding VAT consultant license

S.L. SRO No. Date Particulars
1 144-AIN/2020/105-VAT 11 June 2020 Exemption at different stages (i.e. Import Stage, Import and
Manufacturing Stage and Trading Stage) ;
2 145-AIN/2020/106-VAT 11 June 2020 Rules for valuation and use of stamp and band rolls for tobacco
enriched cigarettes;
3 146-AIN/2020/107-VAT 11 June 2020 Rules for use of collection of tax and use band rolls for Bidi;
4 147-AIN/2020/108-VAT and
155-AIN/2020/116-VAT
11 June 2020 Exemption from Supplementary duty for cigarettes and bidi;
5 148-AIN/2020/109-VAT 11 June 2020 Amendment in Fair Value Rules;
6 151-AIN/2020/112-VAT 11 June 2020 Exemption from advance tax;
7 152-AIN/2020/113-VAT 11 June 2020 Change in Rules for awarding VAT consultant license;
8 153-AIN/2020/114-VAT 11 June 2020 Delegation of Commissioner’s duties and responsibilities to
subordinate authorities (i.e. Assistant Commissioner and
VAT online system reviewer etc.);
9 154-AIN/2020/115-VAT 11 June 2020 Extension of timeline of exemption from advance tax for mobile
manufacturers up to 30 June 2021.
Some other important SROs

01 GO No. 09/VAT/2020
02
03
Date: 11 June 2020
Cancellation of Go No. 23/VAT/2019
dated 26 October 2019 defining
scope of input.
GO No. 10/VAT/2020
Date: 11 June 2020
Submission of certain documents to
Customs station by importers of
inputs for the purpose of availing
4% advance tax facility as
manufacturer.
GO No. 11/VAT/2020
Date: 11 June 2020
Refund of VAT and SD, if any, paid
by the High Commissions,
Diplomats, UN system organizations
and other organizations of
diplomatic status.
Some Important General Orders (GOs)

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