Section No. – 5: Registration of central, or branch unit.—

(1) Every person required to be registered for his economic activities shall have only one VAT registration for the central, and all the branch units.

(2) Notwithstanding anything contained in sub-section (1), a branch unit that maintains the records, and keeps the accounts, independently and separately from the central unit, may have a separate VAT registration.

(3) Every branch unit registered separately shall, for the purposes of this Act, be regarded as a separate taxpayer.

(4) Movement of goods or exchange of services from one branch unit to another separately registered branch unit of the said economic activity shall not be treated as supplies and, consequently, there shall arise no output tax liability or input tax credit claim.

Source: www.nbr.gov.bd

Section No. – 6: VAT registration.—

(1) Every person required to be registered shall make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for VAT registration.

(2) The Commissioner shall, after registering such person within such time, on such terms and in such manner as may be prescribed, issue a VAT registration certificate containing a business identification number.

(3) If the application under sub-section (1) is not made as required under law, the Commissioner shall inform the matter in writing to the applicant.

Source: www.nbr.gov.bd

Cancellation of VAT registration

According to the Section No. – 9 of Value Added Tax and Supplementary Duty Act, 2012 following ways VAT registration will be cancelled in Bangladesh:

(1) If a registered person refrains from carrying on his economic activities, he may make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for the cancellation of VAT registration.

(2) A person, who continues to make taxable supplies, but does not require to remain registered any more, may, within such time, on such terms and in such manner as may be prescribed, may apply to the Commissioner for the cancellation of his registration:
Provided that a person who is registered voluntarily under section 8 shall require remaining registered for at least one year.

(3) The Commissioner may, within such time, on such terms and in such manner as may be prescribed, cancel the VAT registration.

(4) If a registered person does not apply for the cancellation of VAT registration under sub-section (1), and if it appears to the Commissioner, on appropriate enquiry, that the VAT registration of such person is liable to be cancelled‚ he shall issue an order directing such person to make an application for the cancellation of VAT registration; and if no such application is made in accordance with such order‚ the Commissioner may‚ suo moto‚ cancel the VAT registration of such person.

(5) If, after the cancellation of a VAT Registration of a person, it appears to the Commissioner that such person is required to be enlisted‚ then he may‚ suo moto, or upon an application‚ enlist such person as a turnover taxpayer.

(6) Where registration of a registered person is cancelled, he shall—

(a) without much delay, refrain from using or issuing any tax invoice, integrated tax invoice and withholding certificate, credit note, debit note, etc; and

(b) return the VAT registration certificate, and all certified copies thereof, to the Commissioner within such time as may be prescribed, and pay the arrear taxes, and file a final VAT return.

Source: www.nbr.gov.bd

Section No. – 7: Publication and preservation of a list of registered persons.—

(1) The Board shall, from time to time, prepare, in such manner as may be prescribed, a list of registered persons and publish , circulate and preserve such list.

(2) No person, whose name is not included in the published list, shall be considered a registered person.

(3) Every person, whose name is included in such list, shall be treated as a person registered under this Act.

Source: www.nbr.gov.bd

Section No. – 8: Voluntary VAT registration.—

(1) Any person, making a taxable supply in the process of economic activities are not required to be registered, may voluntarily make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for VAT registration.

(2) The Commissioner shall, after registering such person within such time, on such terms and in such manner as may be prescribed, issue a VAT registration certificate containing a business identification number.

Source: www.nbr.gov.bd

Section No. – 9: Cancellation of VAT registration.—

(1) If a registered person refrains from carrying on his economic activities, he may make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for the cancellation of VAT registration.

(2) A person, who continues to make taxable supplies, but does not require to remain registered any more, may, within such time, on such terms and in such manner as may be prescribed, may apply to the Commissioner for the cancellation of his registration:

 Provided that a person who is registered voluntarily under section 8 shall require remaining registered for at least one year.

(3) The Commissioner may, within such time, on such terms and in such manner as may be prescribed, cancel the VAT registration.

(4) If a registered person does not apply for the cancellation of VAT registration under sub-section (1), and if it appears to the Commissioner, on appropriate enquiry, that the VAT registration of such person is liable to be cancelled‚ he shall issue an order directing such person to make an application for the cancellation of VAT registration; and if no such application is made in accordance with such order‚ the Commissioner may‚ suo moto‚ cancel the VAT registration of such person.

(5) If, after the cancellation of a VAT registration of a person, it appears to the Commissioner that such person is required to be enlisted‚ then he may‚ suo moto, or upon an application‚ enlist such person as a turnover taxpayer.

(6) Where registration of a registered person is cancelled, he shall–

(a)  without much delay, refrain from using or issuing any tax invoice, integrated tax invoice and withholding certificate, credit note, debit note, etc; and

(b)  return the VAT registration certificate, and all certified copies thereof, to the Commissioner within such time as may be prescribed, and pay the arrear taxes, and file a final VAT return.

Source: www.nbr.gov.bd

Section No. – 10: Persons required to be enlisted and their enlistment.—

(1) If a person, carrying on an economic activity, exceeds at the end of any quarter of a 12 (twelve)-month period, the enlistment threshold, but does not exceed the registration threshold, such person shall make, within 30 (thirty) days from the end of such a quarter, on such terms and in such manner as may be prescribed, an application to the Commissioner for enlistment as a turnover taxpayer.

(2) The Commissioner shall, after enlisting such person as a turnover taxpayer within such time, on such terms and in such manner as may be prescribed, issue a turnover tax certificate containing a business identification number.

Source: www.nbr.gov.bd

VAT Registration: Who are required to be registered for VAT

According to the Section Number 4 of the Value Added Tax and Supplementary Duty Act, 2012, all of the Persons or business entities don’t need to be registered for VAT. But, following persons or business entities are required to be registered for VAT: 

     (a) a person whose turnover exceeds the registration threshold within a 12 (twelve)- month-period closing at the end of the month preceding that month; or

     (b) a person whose estimated turnover exceeds the registration threshold within the succeeding 12 (twelve)- month-period beginning at the start of the start of the preceding month.

(2) Notwithstanding anything contained in sub-section (1), every person carrying on the following economic activities of—
Has to be registered for VAT, if he—
     (a) manufactures any good subject to supplementary duty in Bangladesh; or

     (b) supplies any service subject to supplementary in Bangladesh;

VAT Registration: Authority & Process

Ultimate Authority of VAT registration is National Board of Revenue (NBR) in Bangladesh. NBR has made digitalization of VAT registration process. If any one to make an application for VAT registration he or she will do that in the VAT Online Service or by going to eBIN registration process. NBR has started Online VAT Registration process. Required documents for VAT registration is also see here. You may contact with us. 

Monthly VAT Return Submission

Every VAT registered persons or entities must submit monthly VAT return by calculation VAT and deposited to the Govt. Treasury. For Monthly Online VAT return submission, we are here to help you.

VAT Digitalization

You may calculate your VAT by VAT Calculator. You can learn about VAT in the NBR website. You will find here all VAT acts. You also make VAT payment by using e-payment portal of VAT online payment. 

Persons required to be registered for VAT

According to the Section No. – 04 of Value Added Tax and Supplementary Duty Act, 2012 following persons are required to be registered for VAT in Bangladesh:

(1) Irrespective of any central, or branch unit, each of the following persons shall, from the first day of a month, be required to be registered for VAT, namely—

     (a) a person whose turnover exceeds the registration threshold within a 12 (twelve)- month-period closing at the end of the month preceding that month; or

     (b) a person whose estimated turnover exceeds the registration threshold within the succeeding 12 (twelve)- month-period beginning at the start of the start of the preceding month.

(2) Notwithstanding anything contained in sub-section (1), every person carrying on the following economic activities of—
Has to be registered for VAT, if he—
     (a) manufactures any good subject to supplementary duty in Bangladesh; or

     (b) supplies any service subject to supplementary in Bangladesh;

Source: www.nbr.gov.bd

Who Needs to Register for VAT?

According to Section 4 of the Value Added Tax and Supplementary Duty Act, 2012, VAT registration is mandatory for the following persons in Bangladesh:

1. Turnover-Based Registration

Any person must register for VAT if:

• Their actual turnover exceeds the registration threshold within a preceding 12-month period, or

• Their projected turnover is expected to exceed the threshold in the coming 12 months.

This applies to each unit individually, whether central or branch-based.

2. Mandatory Registration Regardless of Turnover

A person must register for VAT if they:

• Manufacture goods subject to supplementary duty, or

• Supply services subject to supplementary duty in Bangladesh.

VAT Registration Cancellation

As per Section 9 of the same Act, VAT registration may be cancelled in the following ways:

1. Voluntary Cancellation

If a registered person stops business operations, they may apply to the Commissioner to cancel their VAT registration. The application must follow the prescribed process and timeline.

2. No Longer Liable for VAT

If a person still makes taxable supplies but is no longer required to be registered (e.g. turnover drops below the threshold), they may also apply for cancellation.

Note: A person who registered voluntarily (under Section 8) must remain registered for at least one year before applying for cancellation.

3. Commissioner-Initiated Cancellation

The Commissioner may:

• Cancel registration if the person qualifies under legal provisions, or

• Issue an order instructing a person to apply for cancellation based on findings.

  • If the person fails to comply, the Commissioner may cancel registration on their own (suo moto).

4. Conversion to Turnover Taxpayer

If the Commissioner finds that a cancelled registrant still meets turnover tax criteria, they may be enlisted as a turnover taxpayer, either on their own or via application.

Post-Cancellation Obligations

Once a VAT registration is cancelled, the person must:

• Stop issuing VAT-related documents such as tax invoices, credit/debit notes, or withholding certificates.

• Return the VAT registration certificate (and copies) to the Commissioner.
  

• Pay any outstanding VAT and file a final VAT return as required by law.
  

Final Thoughts

Understanding the registration and cancellation process under VAT law is critical for businesses in Bangladesh. Ensure timely action and compliance to avoid penalties. For detailed procedures and thresholds, always consult the NBR official website or a professional tax advisor.