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| Corporate Practice bd |
Who is required to file VAT returns?
In Bangladesh, the following individuals and entities are generally required to file VAT (Value Added Tax) returns:
VAT Registered Businesses:
Any business or service provider whose annual turnover exceeds the current VAT registration threshold is required to register for VAT. After registration, VAT return filing is mandatory.
Mandatory VAT Registration:
Certain businesses involved in specific activities like import, export, supply against tenders, or are branches/liaison offices of foreign companies must register for VAT and file returns, regardless of their turnover.
Voluntary Registration:
Even if a business's turnover is below the threshold, it can voluntarily register for VAT and, upon registration, will be required to file VAT returns.
The current VAT registration threshold in Bangladesh is BDT 30 million. Businesses with a turnover between BDT 5 million and BDT 30 million are also subject to a turnover tax. These businesses need to obtain a registration in the form of an 'Enlistment Certificate' and pay turnover tax, but the requirement to file full VAT returns generally applies to those above the VAT registration threshold