Value Added Tax and Supplementary Duty Act, 2012

In this Act, unless there is anything repugnant in the subject or context, the following definitions shall apply.

VAT shall be levied on the supply of goods and services and on importation of goods at the rate specified in this Act.

Every registered person shall be liable to pay VAT on taxable supplies made in the course of business.

Every person whose turnover exceeds the prescribed threshold shall register for VAT.

The Commissioner may require any person liable to pay VAT to register, regardless of turnover.

Any person may apply for voluntary VAT registration.

Upon registration, the Commissioner shall issue a registration certificate.

Registration may be cancelled if the person ceases to carry on business.

Taxable supply means any supply of goods or services made in Bangladesh in the course of business.

The time of supply shall be the date of delivery of goods or provision of services.

The value of supply shall be the consideration paid or payable for the supply.

VAT shall be charged at the standard rate or a reduced rate as specified in the Schedule.

Zero-rated supplies include exports and certain international services.

Exempt supplies are not subject to VAT and input tax credit is not available.

A registered person may claim credit for input tax paid on purchases used for taxable supplies.

Input tax credit shall not be available for exempt supplies or personal use.

Output tax means VAT charged on taxable supplies made by a registered person.

Every registered person making a taxable supply shall issue a tax invoice.

A tax invoice shall contain the name, address, registration number of the supplier, and the amount of VAT.

Every registered person shall submit a VAT return for each tax period.

The VAT return shall be submitted within the prescribed period.

The Commissioner may assess the VAT payable if a person fails to submit a return.

Where a person fails to provide records, the Commissioner may make a best judgment assessment.

The Commissioner may revise an assessment upon discovery of new facts.

VAT shall be paid within the prescribed time.

Any unpaid VAT may be recovered as a debt due to the Government.

Interest shall be charged on unpaid VAT at the prescribed rate.

Failure to comply with VAT provisions shall attract penalty.

Any person who evades VAT commits an offence.

Supplementary duty shall be levied on certain goods and services as specified.

Supplementary duty shall be charged at the rate specified in the Schedule.

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Supplementary duty shall be collected in the same manner as VAT.

The Government may exempt any goods from supplementary duty.

Turnover tax shall be levied on small taxpayers at a reduced rate.

Turnover tax applies to persons whose turnover is below the registration threshold.

Every registered person shall maintain proper records of all business transactions.

Records shall be retained for the prescribed period.

The Commissioner or any authorized officer may inspect the records at any time.

The Commissioner may authorize a search of premises where tax evasion is suspected.

Goods may be seized if there is reasonable cause to suspect VAT evasion.

Seized goods shall be released upon payment of the tax due.

Any person aggrieved by an assessment may appeal to the Commissioner.

A further appeal lies to the VAT Appellate Tribunal.

An appeal from the Tribunal lies to the High Court Division on a question of law.

An appeal shall be filed within 30 days of the order.

There shall be a VAT Appellate Tribunal to hear appeals.

The Tribunal shall consist of members appointed by the Government.

The Tribunal shall have the same powers as a civil court.