Obtain A Bin / Vat Registation Certificate In Bangladesh
VAT/BIN Registration
How to Obtain a BIN/VAT Registration Certificate in Bangladesh
Value Added Tax (VAT) is an indirect tax paid by the consumer through a registered person. The VAT on a particular good or service is determined by adding the actual level of value of the said goods or service, adjusting the input tax payable against the supplied goods or service.
Who Pays the VAT?
The VAT procedure is an automatic taxing process based on input tax credit against supply or sale. The supplier accepts the paid-up VAT on the purchase of goods or services as credit against the VAT included in the price during the supply. The seller collects the VAT from the buyer and deposits the net amount to the Government treasury.
As VAT is considered a consumer tax, the consumer pays the full VAT applicable to the goods or services. The producer and supplier at every level of sale realize VAT on behalf of the Government and deposit it to the treasury.
The VAT payer is the last consumer of goods or services in the VAT process. The supplier or seller collects VAT from the purchaser at every sale level and deposits it to the Government treasury.
How to Apply for VAT Registration?
Applying for VAT registration is free, but there are specific requirements to meet to be entitled. You must provide accurate information to support your application, which will help reduce processing delays.
What is Registration or Enlistment?
Under the VAT procedure, any importer, exporter, or taxable supplier must be involved in the VAT process through registration or enlistment. This involves obtaining a Business Identification Number (BIN) as prescribed by the VAT law.
When Should I Obtain Registration or Enlistment?
According to the Value Added Tax and Supplementary Duty Act 2012, VAT registration is compulsory for all business entities.
Mandatory VAT Registration Applies To:
- Those with an annual sales price between Tk 50 lakh and Tk 3 crore.
- Those whose annual sales exceed Tk 3 crore.
Also, the following persons/businesses must obtain compulsory VAT registration, regardless of sales price:
- All individuals/organizations supplying/producing/importing goods/services subject to supplementary duty.
- All individuals/organizations providing goods/services against tender/contract/work order.
- Individuals/institutions engaged in import-export business.
- Manufacturers/Service Providers/Business Suppliers/Shops in Supershops and Shopping Malls/Establishments in City Corporations and District Cities as per General Order No. 17.
VAT Registration is Not Mandatory For:
- Those with annual sales less than Tk 50 lakh and not related to the above-mentioned business types.
- Goods and services exempted from VAT as stated in the first schedule.
What is a Business Identification Number?
A Business Identification Number (BIN) is a 9-digit identifier assigned to a business based on the turnover of its economic activities. It does not define the nature of the individual's business but serves as a specific identification number through which a taxpayer can be recognized. A taxpayer's business information can be accessed via the National Board of Revenue (NBR) website.
How Can I Obtain a BIN?
If your annual turnover exceeds the prescribed limit, you must submit an application to the Commissioner in Form VAT 2.1. Upon proper scrutiny and examination, a Registration Certificate/Turnover Tax Enlistment Certificate will be issued in your favor in Form VAT 2.1, containing a BIN from the VAT system within three working days.
Not everyone is entitled to a BIN. Although anyone can apply for free, only eligible individuals will be granted and hold a BIN.