VAT (Value Added Tax) is an important tax in Bangladesh. Many small business owners are confused about when VAT applies and how to pay it correctly. This guide explains VAT in simple steps.

 

Step 1: Who Must Pay VAT

You need to pay VAT if:

  • Your annual business turnover crosses the VAT threshold set by the government
  • You sell VAT-applicable goods or services
  • You import goods
  • You are registered for VAT and have a BIN

Official source:
https://nbr.gov.bd/index.php/vat

 

Step 2: Register for VAT (Get BIN)

Before paying VAT, you must obtain a Business Identification Number (BIN).

Steps:

  • Visit the VAT online system
  • Create an account
  • Apply for VAT registration
  • Submit required business information

Official VAT & BIN registration portal:
https://vat.gov.bd/

 

Step 3: When VAT Must Be Paid

VAT is usually paid:

  • Every month
  • Within the deadline of the following month as set by NBR

You must:

  • Submit a VAT return
  • Pay VAT amount if applicable

Late submission may result in penalty or fine.

 

Step 4: How VAT Is Calculated (Simple Example)

Example:

  • Product price: BDT 1,000
  • VAT rate: 15 percent
  • VAT amount: BDT 150
  • Total price to customer: BDT 1,150

VAT is collected from customers and paid to the government.

 

Step 5: How to Submit VAT Return Online

Steps:

  • Login to the VAT portal
  • Select VAT return form
  • Enter sales and purchase information
  • Review and submit

VAT return portal:
https://vat.gov.bd/

 

Step 6: How to Pay VAT

VAT can be paid through:

  • Authorized banks
  • Online payment system (if available)
  • Bank challan

Always keep:

  • VAT payment receipt
  • VAT return submission copy

 

Step 7: Records You Must Keep

You should keep:

  • VAT invoices
  • Sales records
  • Purchase bills
  • VAT return copies
  • VAT payment receipts

These records are required during audit or inspection.

 

Common VAT Mistakes to Avoid

  • Not registering for VAT when required
  • Missing monthly VAT return deadlines
  • Collecting VAT but not paying it
  • Not issuing VAT invoices
  • Poor record keeping

 

Official Government Support

National Board of Revenue (NBR)
https://nbr.gov.bd/

VAT Online System
https://vat.gov.bd/

SME Foundation Bangladesh
https://smef.gov.bd/

 

Final Advice for Entrepreneurs

Register for VAT only when required.
Submit VAT returns on time.
Pay VAT regularly and honestly.
Keep all documents safely.
Seek help from NBR or SME Foundation if needed.