Posted on Feb 8, 2020

Hassan and Associates

- VAT is imposed on goods and services at import stage, manufacturing, wholesale and retails levels;

- A uniform VAT rate of 15 percent is applicable for both goods and services;

- 15 % VAT is applicable for all business or industrial units with an annual turnover of Taka 2 million and above;

- Turnover tax at the rate of 4% is leviable where annual turnover is less than Taka 2 million;

- VAT is applicable to all domestic products and services with some exemptions;

- VAT is payable at the time of supply of goods and services;

- Tax paid on inputs is creditable/adjustable against output tax;

- Export is exempt;

- Cottage industries (defined as a unit with an annual turnover of less than Taka 2 million and with a capital machinery valued up to Taka 3,00,000) are exempt from VAT;

- Tax returns are to be submitted on monthly or quarterly or half yearly basis as notified by the Government.

- Supplementary Duty (SD) is imposed at local and import stage under the VAT Act, 1991.
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