Corporate practice bdRegistered Supplier and Supplier.
Notwithstanding anything contained in section 18, the services rendered by a registered non-resident to another registered recipient shall be rendered in Bangladesh, if:
(A) the supplier conducts economic activities from or through a specific place in Bangladesh; And
(B) The supply is provided for the purpose of the said economic activity or at the specified place.
VAT agent of a non-resident person.
(1) If a non-resident person does not conduct economic activities from a certain place in Bangladesh, he shall appoint a VAT agent.
(2) All the responsibilities and functions of the non-resident person shall be performed by the said VAT agent, and he shall be jointly and individually liable with the non-resident person for the payment of all taxes, including imposition of taxes, fines, penalties and interest.
(3) The registration of economic activities performed by a VAT agent shall be in the name of its principal.
(4) The Board may determine the conditions, procedure and liability for the appointment of VAT agent.
In the case of imported services, tax is levied from the recipient (reverse charged).
Notwithstanding anything contained in this Act, any imported service shall be taxable:-
(A) the recipient of the supply becomes a registered or unregistered person and acquires such services in the course of economic activities; And
(B) if the supply is provided in Bangladesh by a registered or non-registered person in the course of economic activities:
(Ii) the said service is taxable at any rate other than zero rate; And
(Ii) The supplier is not exempt from all VAT levied on the said service.
(2) The value-added tax payable by the recipient of the taxable supply of imported services shall be both product and material tax of the said person.
(3) If any adjustment event has occurred or occurred due to the provision of imported services, the said service shall be a taxable supply due to the occurrence of such adjustment and the recipient of such service shall be deemed to be the service provider.
(4) For the purpose of definition of "imported service" and the application of this law to the said service, if any registered or non-registered person conducts economic activities from a specific place within Bangladesh and from one or more specific places outside Bangladesh,
(A) the person shall be treated as two separate persons in the case of taxable activities conducted inside and outside Bangladesh;
(B) A person residing outside Bangladesh shall be deemed to have rendered services to a person residing within Bangladesh (as defined for the purposes of this Act) with the nature of the service, which may be obtained by the person residing within Bangladesh through the activities conducted by the person residing outside Bangladesh or consequently. ;
(C) the time of delivery shall be determined by assuming that the service has been provided; And
(D) The value of the service shall be determined on the assumption that the service has been provided by a non-resident person outside Bangladesh to a partner in Bangladesh.
Supply with zero rate.
(1) Notwithstanding anything contained in this Act, in case of the following supply the VAT rate shall be zero, viz.
(A) any provision referred to in Sections 22, 23 and 24; Or
(B) Provision regarding the right to receive zero rate supply or future purchase or sale option.
(2) If a supply is both exempt and has zero rate, then the supply under this sub-section shall be non-exempt and have zero rate.Land outside Bangladesh.
The supply of immovable property shall be zero, if the land belonging to immovable property is situated outside Bangladesh.
Supply of goods for export.
(1) The supply of any product for export shall have zero rate:
Provided, however, that the provisions of this sub-section shall not apply to the export of any goods which are re-imported or intended for re-import.
(2) The following supply shall have zero rate, namely: -
(A) if the product is located outside Bangladesh at the time of delivery and is not assembled, installed or imported into Bangladesh by the supplier of the product;
(B) if the goods are supplied to a place outside Bangladesh after entry into Bangladesh for consumption after importation, the goods shall be deemed to have been located outside Bangladesh at the time of supply;
(C) the supply of any goods for consumption outside Bangladesh by a licensed seller of duty-free goods to a tourist or a visitor coming from abroad; Or
(D) If the product resides outside Bangladesh for the entire period of a specified period, then the lease, hire, license or other provisions relating to the use of such product shall be treated as separate supplies and each such supply shall have zero rate.
Provided, however, that if the product is located in Bangladesh immediately before and after its position on the international territory, then the leased product shall be deemed to be within Bangladesh.
(3) Subject to the following conditions, the supply of any product used for repair, maintenance, cleaning, renovation, alteration or similar work shall be zero rate, viz .: -
(A) if the supplied product is attached to the product or becomes part of it or becomes unusable or damaged as a result of being attached;
(B) if the goods are temporarily imported to Bangladesh under the Customs Act; Or
(C) If the product is temporarily brought to Bangladesh for service and after receiving the service, the product is exported from Bangladesh without being used for any purpose other than receiving the service.
(4) Subject to the following conditions, the supply of warranty products for repair or replacement shall be zero rate, namely: -
(A) the non-resident and unregistered warranty will be paid by the issuer under the contract executed with the warranty issuer if the said goods are supplied; And
(B) If the goods are repaired or replaced without imposing any charge on the owner.
(5) The goods supplied in the process of repairing, maintaining, cleaning, repairing, altering, or otherwise affecting the physical condition of sea-going ships or aircraft or any similar vehicle engaged in international transport shall have zero rates.
(6) If cargo or parts related to sea-going ships or aircraft engaged in international transport are used for the use, consumption, or sale of such vehicle during flight or by sea voyage, such cargo or parts shall have zero rates.
(7) At the time of supply, the service rendered physically on any product located outside Bangladesh shall have zero rates.
Subject to the following conditions, the provision of any service for the purpose of repairing, maintaining, cleaning, repairing, altering, etc. of any product shall be zero rates, namely: -
(A) if the goods are temporarily imported under the Customs Act; Or
(B) If the product is temporarily brought to Bangladesh for the purpose of receiving the service and after receiving the service it is not used for any other purpose in Bangladesh and is exported from Bangladesh.
(C) The supply of services included in the duty price of imported goods shall be zero-rated.
(D) If any service is provided outside of Bangladesh and such service is of such kind that it is provided by any person at the time and place where it is provided, then the provision of such service shall be zero-rated.
(6) Subject to the provisions of sub-section (5), the provision of any service shall be zero rates, if:
(A) Suppliers:
(Ii) is a non-resident person and resides outside Bangladesh while providing services; Or
(Ii) is a resident and who, while providing services, resides outside Bangladesh and receives such services in practice; And
(B) The said service:
(I) is not directly related to land in Bangladesh;
(Ii) it is not physically delivered on the product located in Bangladesh at the time of supply; Or
(E) Global roaming is not provided to any person temporarily residing outside Bangladesh.
No service under sub-section (4) shall have zero rates, if:
(A) the provision of such services relates to the right to receive a subsequent supply (which is not exempt or void) or to acquire the option to purchase in the future in any other matter in Bangladesh; Or
(B) The said service is provided under an agreement entered into with a non-resident person for the purpose of providing it to an unregistered person in Bangladesh.
(C) For the purpose of protection of rights related to any intellectual property outside Bangladesh, the provision of services related to case registration, case management, transfer of rights, its preservation, transfer, transfer of rights, licensing or enforcement of rights shall be zero-rated.
(D) The provision of telecommunication services provided by a telecommunication provider to another non-resident telecommunication provider shall be zero-rated.
(10) The provision of services provided in favor of the product with warranty for repair or replacement shall be subject to the following conditions, with zero rates, namely: -
(A) if the service is provided under a contract executed with the warranty provider to the effect that the payment will be made by the non-resident and unregistered warranty provider; Or
(B) Services are rendered without imposing any charges on the owner.
The following services shall be provided with zero rates, namely: -
(A) provision of services in international transport;
(B) the provision of insurance services for the international transportation of goods;
(C) the provision of services for repairing, preserving, cleaning, repairing, altering, or otherwise affecting the physical condition of sea-going ships or aircraft engaged in international transport;
(D) the provision of services directly to unregistered and non-resident persons directly involved in the operation, operation or management of any seafaring vessel or aircraft engaged in international transport; Or
(E) Shipment and unloading supplies.
Travel Agent and Tour Operator. The Board may decide whether the provision of tourism services in Bangladesh shall be subject to zero rates or not, regardless of whether or not the provision is made in Bangladesh and not zero rates on an overall basis for each tax term. The Board may formulate rules for pricing tourism services.
Explanation: For the purposes of this section, "tourism service" means accommodation, food, travel, recreation, and similar matters which are usually provided to tourists and international visitors.
Exempted Supplies or Exempted Imports.
Notwithstanding anything contained in this Act, the following supplies shall be exempt from VAT, viz.
(A) any supply or import mentioned in the First Schedule; Or
(B) Provisions relating to the right to receive exempt supplies or the right to purchase or sell in the future.