Tagging of VAT Sections with VAT Rules

Table of Contents

Value Added Tax and Supplementary Duty Act, 2012

The VAT system in Bangladesh is governed by the Value Added Tax and Supplementary Duty Act, 2012. Although the current VAT Act of our country (Value Added Tax and Supplementary Duty Act, 2012) was passed in the parliament in 2012, the Act came into effect in from July 1, 2019. When the new law was enacted, it replaced the previous law known as the “Value Added Tax Act 1991”. In VAT & SD Act 2012, there are 18 Chapter and 139 Sections.

Value Added Tax and Supplementary Duty Rules, 2016

Like every other law, the Value Added Tax and Supplementary Duty Act also has rules for its implementation. The National Board of Revenue (NBR) issued Value Added Tax and Supplementary Duty Rules, 2016 (vide S.R.O. No- 333-Law/2016/1-VAT, dated November 3, 2016) through a gazette notification on November 3, 2016, which has been amended several times subsequently. In VAT & SD Rules 2016, there are 119 Rules.

Why is it necessary to know the Value Added Tax and Supplementary Duty Rules?

To understand and know details regarding the VAT system, undoubtedly you should go through the VAT Act. But it is not enough to just know the VAT Act alone; anyone is also required to know the respective VAT Rules. The detailed descriptions or practical aspects of VAT sections are explained in the VAT Rules, formally known as Value Added Tax and Supplementary Duty Rules 2016.

Therefore, to have an idea about the VAT Act, we must also have an understanding of the VAT Rules. Furthermore, if we do not know or read the respective rules associated with the VAT Section, then our knowledge about the related subject becomes limited.

VAT Rules related to each Section of the VAT Act

Which Section of the VAT Act is related to which Rules is outlined here in detail in the table below.

Section	Title of the section	Rule	Title of the Rule
1	Short title and commencement	1	Short title and commencement
2	Definitions	2	Definition
3	The Act to prevail	–	–
4	Persons required to be registered for VAT	–	–
5	Registration	3	Determination of threshold of registration or enlistment
6	Procedure of VAT registration	4	Application for registration and issuance of registration
7	Publication and preservation of a list of registered persons	10	List of registered or enlisted persons
8	Voluntary VAT registration	6	Voluntary registration
9	Cancellation of VAT registration	8	Cancellation of VAT registration
10	Persons required to be enlisted and their enlistment	5	Application for enlistment and enlistment
11	Cancellation of enlistment	9	Cancellation of Turnover Tax enlistment
12	Registration or enlistment,[***] suo moto, of persons required to be registered or enlisted	7	Registration or enlistment done by the Commissioner on his own
13	Responsibility of a registered or enlisted person to display certificates	11	Use of Business Identification Number
14	Responsibility of a registered or enlisted person to keep informed of changes in information	12	Notifying the changed information
		13	Change in place of business
		14	Duplicate of Registration Certificate or Enlistment Certificate
		15	Transitional registration or enlistment
15	Imposition of VAT	–	–
16	Persons liable to pay value added tax	–	–
17	Supplies made within Bangladesh	–	–
18	Registered Supplier and registered recipient	–	–
19	VAT Agent of non-residents	16	Appointment of VAT Agent, etc.
19	VAT Agent of non-residents	17	Nomination of VAT Agent
20	Imported services reverse charged to recipient	–	–
21	Zero-rated supplies	–	–
22	Land outside Bangladesh	–	–
23	Supply of goods for export	18A	Supply of goods and services against international tender in exchange of foreign currency
		18B	Supply of goods and services against domestic back to back LC in exchange of foreign currency
		18C	Supply of goods and services in case of backward linkage industry
24	Supply of zero- rated services	–	–
25	Travel Agent and tour operators	18	Travel Agent and Tour Operator
26	Exempted supplies, or exempted imports	–	–
27	Manner of VAT collection in case of taxable imports	–	–
28	Determination of vat-imposable base value in case of taxable imports	–	–
29	Determination of value of re-imported goods	–	–
30	Imports for exports	–	–
31	Payment of advance tax at the time of import and its adjustment	19	Adjustment and refund of Advance Tax paid at import stage
32	Determination of value of taxable supply	20	Determination of Value of a supply without consideration
32	Determination of value of taxable supply	21	Declaration of input-output co-efficient
32A	Explanation by the Board	118A	Power to issue order, notification, explanation, circular, clarification etc.
33	Time of payment of VAT on taxable supply	–	–
34	Progressive or periodic supplies	–	–
35	Supply multiple types of goods and services through single challan	–	–
36	Sale of an establishment as a going concern	22	Method of selling a going concern
37	Rights, options, and vouchers	–	–
38	Supply of prepaid telecommunications products or services	23	Method of taking credit by a pre-paid telecommunications service recipient or user of goods
39	Lotteries, lucky draws, housie, raffles, and similar undertakings	–	–
40	Value of in-kind benefits, given to an employee or officer, provided through goods instead of cash money	–	–
41	Lay-by sales	–	–
42	Cancelled transactions	–	–
43	Sale of property to pay off a debt	24	Method of selling property in satisfaction of payment of loan by an unregistered creditor
–	–	24A	Disposal of unused or unusable inputs
–	–	24B	Disposal of goods damaged or destroyed in accident
–	–	24C	Supply and disposal of waste and by-products goods
44	Vending machines	–	–
45	Manner of assessing net payable tax on supplies and payment thereof	25	Procedure for payment of tax
46	Input tax credit	–	–
47	Partial input tax credit	26	Taking partial input tax credit
48	Adjustments	27	Post-supply adjustment procedure in case of adjustment events
		28	Post-supply adjustment for unrealized consideration
		29	Adjustment for not paying money through banking channel
		30	Adjustment in case of wealth used for private purposes
		31	Adjustment of input tax and VAT for being registered
		32	Adjustment in case of cancellation of registration
		33	Adjustment in case of second-hand goods purchased for resale
		34	Adjustment related to insurance
		35	Adjustment in relation to lottery, lucky-draw, raffle draw, housie and similar undertakings
		36	Adjustment in case of changes in tax rate
49	Tax withheld at source and increasing adjustment by withholding entity	37	Payment of VAT deducted at source by the unregistered recipient of supply
49		38	VAT deduction at source and payment by Accounts Officer on behalf of unregistered recipient of supply
50	Decreasing adjustment by the supplier after the tax withheld at source	39	Decreasing adjustment by the supplier following deduction at source
51	Tax invoices	40	Accounting of Value Added Tax
52	Credit notes and debit notes
53	Tax withholding certificate
54	Other provisions relating to tax documents	42	Submission of information related to purchase-sale
		43	Documents issued by or to the representative
		44	Restrictions regarding duplication
55	Imposition of supplementary duty	–	–
56	Persons liable to pay supplementary duty	–	–
57	The value for imposition of supplementary duty	–	–
58	Special schemes for tobacco and alcoholic goods	–	–
59	Collection of supplementary duty on imports	–	–
60	Collection of supplementary duty on supplies	–	–
61	Presumed supply of goods subject to supplementary duty	–	–
62	Decreasing adjustments for supplementary duty	45	Adjustment of Supplementary Duty in case of export
63	Imposition and collection of turnover tax	41	Accounting of Turnover Tax
63	Imposition and collection of turnover tax	46	Collection of Turnover Tax
64	Filing of return	47	Filling of return
64	Filing of return	51	Calculation of time while submitting the return by post of messenger
65	Late filing of return	48	Procedure of late filling of return
66	Amendments to return	49	Amendment of return
67	Filing of complete, additional, or alternative returns	50	Complete, additional or alternative return
68	Carry forward and refund of negative net amount	52	Refund
69	Refunds without carry forward of net negative amounts of money	52	Refund
70	Application of the refunded money	54	Application of refunded amount
71	Refund of taxes paid by diplomats and other international organisations	55	Refund of the tax paid by the diplomatic and other international organization
72	Refund or adjustment of taxes paid in excess	–	–
–	–	56	Tax refund to foreign tourists
–	–	57	Selection of registered persons with the purpose of issuing VAT Refund Certificate to the foreign tourists
73	Tax determination	57A	Method of tax determination
74	False declaration by the recipient of a supply	–	–
75	False statement by supplier	–	–
76	Grant of tax benefit or its negation	58	Negation of tax advantage from special scheme
77	Admissibility of tax determination notice	–	–
78	Value Added Tax Authority and officers thereof	–	–
79	Duties and responsibilities of the VAT Authority	–	–
80	Power of the Board to amend or alter an order or decision of a VAT officer	59	Power of the Board to amend the order or the decision of the VAT official
81	Delegation of Power	–	–
82	Assistance to VAT officers	–	–
83	Power to enter and search by VAT officers	60	Power of VAT official to entry and search
84	Seizure of goods and disposal thereof	61	Seizure of records, documents, goods or vehicle carrying goods
		62	Returning the seized records and documents
		63	Releasing the seized goods or vehicle carrying goods
85	Imposition of monetary penalty for non-compliance, irregularities or tax evasion	65	Procedure for imposing penalty
86	Monetary limits of the VAT officers in initiating a proceeding for adjudication	–	–
87	Power to summons	–	–
88	Duties and powers of the Customs Officers	–	–
89	Confidentiality	–	–
89A	Application of other laws in case of Value Added Tax Act	–	–
90	Audit and investigation of a taxpayer’s economic activities	66A	Audit of tax related activity of the tax prayers
90A	Filing of annual audited financial statements	–	–
91	Powers of the VAT officers	–	–
92	Supervised supply, observation and surveillance	66	Supervised supply, observation and surveillance
93	Multiple departmental audits	–	–
94	Special audit	67	Appointment of auditor for performing special audit
95	Recovery of arrear tax	64	Power and procedure of freezing bank account
		68	Standard procedure to realize arrear tax
		69	Deduction procedure from money controlled by any Income Tax or Customs or VAT or Excise Authority
		70	Deduction procedure from any individual, associate or financial institution or bank
		71	Procedure to freeze the bank account of any defaulting taxpayer
		72	Procedure of keeping business premises of any defaulting taxpayer under lock and key
		73	Procedure of seizure of moveable property of any defaulting taxpayer
		77	Interest, expenses, charges, etc.
		79	Suspension of decree
		80	Attachment of salary of employees
		81	Seizure of share or negotiable instrument
		82	Attachment or seizure of property under the supervision of bank or public servant
		83	Attachment or seizure of a jointly owned property
		84	Preparing list before attaching or seizing property
		85	Time of attachment or seizure of property
		86	Limitation of attachment or seizure of property
		87	Power to enter into the property for attachment or seizure
		88	Assistance from government-nongovernment officials including police for attaching or seizing property
		89	Working procedure of the Debt Recovery Officer for attachment of immovable property or seizure of movable property
		90	Procedure of selling attached immovable property or seized moveable property of the defaulting taxpayer
		91	Withdrawal of the certificate issued for seizure of moveable property or attachment of immoveable property of the defaulting taxpayer
		92	Security deposit received from any custodian of the tax defaulter
96	Power of VAT officer under the Code of Civil Procedure	–	–
97	Change in jurisdiction for recovery of arrear tax	–	–
98	Disposal of money or security recovered	–	–
99	Government lien on the immovable property of the defaulting taxpayer and attachment thereof	74	Attachment procedure of immovable property of any defaulting taxpayer
		75	Issuance of order for seizure of moveable property or attachment of immovable property of any defaulting taxpayer
		76	Non-cooperation or resistance in keeping the business premises of the defaulting taxpayer under lock and key, seizure of moveable property or attachment of immoveable property
		78	Property that cannot be attached or seized
100	Seizure of goods, sale of such goods and disposal of the sale proceeds thereof	75	Issuance of order for seizure of moveable property or attachment of immovable property of any defaulting taxpayer
100		76	Non-cooperation or resistance in keeping the business premises of the defaulting taxpayer under lock and key, seizure of moveable property or attachment of immoveable property
101	Liabilities and obligations of the representative	–	–
102	Responsibilities of receivers	93	Procedure of paying taxes by the receiver
১০৩	Liability of directors or entrepreneurs of any company or association of persons or of property development joint venture	–	–
104	Continuity of partnerships or unincorporated associations	–	–
105	Death or insolvency of a taxpayer	–	–
106	Payment of arrear tax by installments	94	Payment of arrear taxes in installments
107	Keeping of records and accounts	95	Maintenance of records and accounts
108	Authentication of forms, notices and documents	–	–
109	Service of notices	–	–
110	Authenticity of documents	–	–
111	Offences relating to VAT registration certificate or turnover tax certificate and tax invoice, and punishment thereof	–	–
112	Offence and punishment relating to false or misleading statement or description	–	–
113	Offence and punishment for obstructions	–	–
114	Investigation, trial and appeal of the offence	96	Investigation procedure of offense
115	Additional Power of the Judicial Magistrate or the Metropolitan Magistrate	–	–
116	Offence committed by any company, association of persons or property development joint venture	–	–
117	Abettor of offence	–	–
118	Prior approval before filing a case	–	–
119	Compoundability of the offences	97	Procedure for compoundment of offense
120	Fine additional to the tax payable	–	–
121	Appeal to Commissioner (Appeal)	98	Appeal to the Commissioner (Appeal) and procedure of its disposal
122	Appeal to Appellate Tribunal	–	–
123	Burden of proof in a proceeding	–	–
124	Appeal to the High Court Division	–	–
125	Alternative dispute resolution	99	Procedure for alternative dispute resolution
		100	Objection against the Facilitator
		101	Eligibility of the Facilitator, appointment and list
		102	The duties and responsibilities of the Facilitator
		103	The code of conduct of the Facilitator
		104	Conflict of Interest
		105	Rights and responsibilities of the applicant in case of alternative dispute resolution
		106	Nomination of departmental representative for Value Added Tax Department.
		107	Honorarium of the Facilitator
		108	Preserving rights
126	Exemption	–	–
126A	Giving rewards and performance incentives	–	–
127	Imposition of interest on payable tax	–	–
127A	Power to write off government dues	–	–
127B	Determination time and manner of payment of tax in case of certain goods or services	–	–
128	Online performance of functions, filing of return and payment of tax, etc	–	–
129	Bar to the lodgement of suits in the Court	–	–
129A	Protection of acts done in good faith	–	–
130	Appointment of VAT Consultant	109	Procedure of issuing VAT Consultant license
		110	Eligibility and ineligibility of the applicant for VAT Consultant license
		111	Required documents for application
		113	Responsibilities of VAT Consultant
		114	Offences and penalties of the VAT Consultant
131	Correction of clerical mistakes, etc	–	–
132	Certified copy of documents	115	Attested copies of documents
133	Issuance of VAT clearance certificate	116	Procedure of providing VAT Clearance Certificate and Honor Card
133	Issuance of VAT clearance certificate	117	Use of VAT Clearance Certificate and Honor Card
–	–	118	Adjustment of closing balance lying with Current Account Register (Mushak-18) under Value Added Tax Act, 1991
134	Acts to be done through a private organisation	–	–
135	Power to make rules	118A	Power to issue order, notification, explanation, circular, clarification etc.
135A	Determination of uniform and allowances of VAT officers and employees	–	–
–	–	118B	Declaration of temporary abstention from giving supply
–	–	118C	Facilitate production of capital machinery and spare parts at local level
136	Publication of translated English text	–	–
137	Repeal and savings	119	Repeal and savings
138	Tax accounting during transition	–	–
139	Agreements entered into after the introduction of this Act	–	–