2019-10-17 14:31:21 BdST
Uniform VAT registration for similar products introduced
The National Board of Revenue is allowing companies to pay Value Added Tax (VAT) for similar products and services through a uniform registration system.
Any company, even those having multiple factories, branches and showrooms across Bangladesh will be able to use one central registration system to pay VAT.
The VAT division of the revenue board passed the general order on Tuesday, with the aim of minimising the hassle faced by traders and easing processes such as export-import and production-distribution.
The first secretary of the VAT division Hasan Mohammad Tarek Rikabder said, "The central registration system will eliminate the need for large companies to use multiple BINs.
Business identification number (BIN) is a certificate issued by the National Board of Revenue to companies with an annual turnover exceeding Tk50 lakh. The BIN is mandatory for most companies in the production and service sectors.
"A company which has branches all over the country will be able to pay VAT at the nearest commissionerate instead of using multiple field offices," Tarek Rikabder added.
According to the new revenue board general order, merchants can use the uniform registration system for all business activities, including similar production, supply and services in multiple locations.
The registration system can also be used for procuring raw material and ingredients for producing a similar type of product.
As per the newly introduced regulations, the VAT paying company can avail the facility by maintaining a central account. However, separate accounts must be maintained for different units.
In the import-export sector, associate or subsidiary companies must open letters of credit using the main company's address to avail facilities offered by the uniform registration system.
Office branches and showrooms belonging to the same company will retain their existing registrations.
For example, Rangpur Metal Industries – which belongs to one of the largest conglomerates in Bangladesh, PRAN-RFL Group, has six factories in different districts and many showrooms across the country.
The company is presently paying VAT through separate registrations to different field offices. However, the new directive will allow Rangpur Metal Industries to use a single registration number to pay VAT for all their factories and showrooms.
The business community has welcomed the revenue board's initiative by saying that the new uniform registration system will benefit large companies.
"When the general order comes into effect, it will allow large companies to use just one VAT registration number to conduct businesses such as import and export, regardless of how many branches that company has," said Federation of Bangladesh Chambers of Commerce & Industries Adviser Abdul Khaleque.
Following the implementation of the new VAT law, around 1.88 lakh businesses got registered online.
Unauthorized use or reproduction of The Finance Today content for commercial purposes is strictly prohibited.