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Local Sales with VAT Accounting Process in Bangladesh |
Local Sales with VAT Accounting Process | Bangladesh Guide:
Local Sales
The concept of local sales applies when an export-oriented manufacturing company sells certain goods or products within its domestic market. Although the company primarily operates as an export-oriented business, it may also make sales within its own country. Therefore, its sales activities can generally be classified into two categories:
- Local Sales – Sales of goods or products made within the domestic market.
- Export Sales – Sales of goods or products made to customers outside the country.
In this article, we will discuss both local sales and export sales with a practical example from a 100% export-oriented group of companies. The example will explain how these sales are recorded, presented, and accounted for in the monthly sales statement.
Export & Local Sales Statement — June 2026
The following section presents a practical Export and Local Sales Statement for June 2026, showing how an export-oriented company can classify and summarize its local and export sales for accounting and reporting purposes.
|
LC No. |
Party -Name |
Mushake No. |
Date |
Product |
Qty(kgs) |
Price ($)/Tk |
Total-Value ($)/Tk |
Local sales |
VAT 5/kg |
|
29672506050 |
ABC Ltd |
0050 |
02.08.2025 |
20 Card Yarn
|
5000 |
2.50 |
12500 |
- |
0 |
|
30672506080 |
NTC Ltd |
0050 |
03.08.2025 |
9 Card Yarn |
3000 |
2.25 |
6750 |
- |
|
|
20672506090 |
BBC Ltd |
0050 |
04.08.2025 |
20 Card Yarn |
2000 |
2.50 |
5000 |
- |
|
|
31672506010 |
kKC Ltd |
0050 |
05.08.2025 |
7 Card Yarn |
7000 |
2.50 |
17500 |
- |
|
|
25672506070 |
XYZ Ltd |
0050 |
06.08.2025 |
20 Card Yarn |
3000 |
2.50 |
7500 |
- |
|
|
21672506090 |
SR Ltd |
0050 |
07.08.2025 |
10 Card Yarn |
2000 |
2.50 |
5000 |
- |
|
|
28672506030 |
MN Ltd |
0050 |
08.08.2025 |
20 Card Yarn |
1000 |
2.50 |
2500 |
- |
|
|
20672506040 |
kk Ltd |
0050 |
09.08.2025 |
8 Card Yarn |
9000 |
2.50 |
28750 |
- |
|
|
22672506020 |
MNC Ltd |
0050 |
10.08.2025 |
20 Card Yarn |
5000 |
2.50 |
12500 |
- |
|
|
Local Sales |
MNC Ltd |
0050 |
10.08.2025 |
6 Card Yarn |
1000 |
249(Tk.) |
- |
249000 |
5000 |
|
Local Sales |
MNC Ltd |
0050 |
10.08.2025 |
12 Card Yarn |
5000 |
249(Tk) |
- |
1245000 |
25000 |
|
Local Sales |
MNC Ltd |
0050 |
10.08.2025 |
14 Card Yarn |
5000 |
249(Tk) |
- |
1245000 |
25000 |
|
Local Sales |
MNC Ltd |
0050 |
10.08.2025 |
20 Card Yarn |
8000 |
249(Tk) |
- |
1992000 |
40000 |
|
Local Sales |
MNC Ltd |
0050 |
10.08.2025 |
15 Card Yarn |
5000 |
249(Tk) |
- |
1245000 |
25000 |
|
Local Sales |
MNC Ltd |
0050 |
10.08.2025 |
16 Card Yarn |
4000 |
249(Tk) |
- |
996000 |
20000 |
|
Local Sales |
MNC Ltd |
0050 |
10.08.2025 |
17 Card Yarn |
5000 |
249(Tk) |
- |
1245000 |
25000 |
|
Local Sales |
MNC Ltd |
0050 |
10.08.2025 |
20 Card Yarn |
2000 |
249(Tk) |
- |
498000 |
10000 |
|
Local Sales |
MNC Ltd |
0050 |
10.08.2025 |
7 Card Yarn |
5000 |
249(Tk) |
- |
1245000 |
25000 |
|
|
|
|
Total |
77,000kgs |
|
$98,000 |
99,60,000 |
2,00,000 |
|
Statement of Local sales for VAT Account purpose
|
Sales |
Party Name |
Qty(kg) |
VAT =Tk.5 per (kg) |
Amount of VAT |
|
Local Sales |
MNC Ltd |
1000 |
5 |
5000 |
|
Local Sales |
ABC Ltd |
5000 |
5 |
25000 |
|
Local Sales |
LLP Ltd |
5000 |
5 |
25000 |
|
Local Sales |
RTM Ltd |
8000 |
5 |
40000 |
|
Local Sales |
XYZ Ltd |
5000 |
5 |
25000 |
|
Local Sales |
STRING Ltd |
4000 |
5 |
20000 |
|
Local Sales |
BMB Ltd |
5000 |
5 |
25000 |
|
Local Sales |
MNC Ltd |
2000 |
5 |
10000 |
|
Local Sales |
WXY Ltd |
2000 |
5 |
10000 |
|
Total |
40,000 |
5 |
2,00,000 |
|
When VAT Amount of cash deposited to Bank through TR Challan Then we pass Cash Payment Voucher.
Voucher No. 01
Voucher Date: 10-10-2026 Cash Payment Voucher
|
Ledger Name |
Debit (TK) |
Credit (TK) |
Remarks |
|
VAT on Local sales |
2,00,000 |
|
|
|
Cash in hand (F.O) |
|
2,00,000 |
|
Narration:
Amount deposited to Sonali Bank Limited Dhaka Branch, Dhaka against Local Sales value added tax Challan No.2526-0**** dated 10.10.26.,
Conclusion:
Understanding the local sales with VAT accounting process helps businesses maintain accurate financial records and meet VAT compliance requirements in Bangladesh. By recording sales correctly, calculating applicable VAT, issuing proper VAT invoices, and maintaining supporting documents, businesses can simplify VAT return preparation and reduce accounting errors. Proper VAT accounting also supports transparent and efficient business operations.
Frequently Asked Questions (FAQs)
1. What are local sales in VAT accounting?
Local
sales are taxable sales of goods or services made within the domestic market.
In Bangladesh, taxable supplies are subject to VAT according to the applicable
VAT rules and rates.
2. How is VAT calculated on local sales in
Bangladesh?
VAT
on local sales is calculated according to the applicable VAT rate and taxable
value of the supply. Output VAT collected on sales may be adjusted against
eligible input VAT under the applicable rules.
3. Which VAT invoice is used for local
sales in Bangladesh?
Registered businesses generally issue a VAT invoice in Mushak-6.3 for
applicable supplies and maintain sales records as required under Bangladesh VAT
rules.
4. How are local sales recorded in VAT
accounts?
Local
sales should be recorded in the appropriate sales accounts with the relevant
invoice details, taxable value, output VAT, and applicable adjustments. These
records support VAT return preparation and compliance.