How to Obtain a BIN/VAT Registration Certificate in Bangladesh
Value Added Tax or VAT is such an indirect tax that is paid by the consumer through a registered person. Value Added Tax or VAT on a particular good or service is determined on the basis of adding an actual level of value of the said goods or service adjusting input tax payable against the supplied goods or service.
Who is Liable to Pay VAT?
Value Added Tax (VAT) is a consumption-based tax system that operates on an automatic input tax credit mechanism applied at each stage of the supply chain. Under this system, a supplier offsets the VAT paid on purchases (input tax) against the VAT collected on sales (output tax) and remits the net amount to the government.
In practice, the seller incorporates VAT into the price of goods or services and collects it from the buyer at the point of sale. After deducting any VAT already paid on inputs, the seller then deposits the remaining VAT amount with the government treasury.
Since VAT is ultimately a consumer tax, the final liability rests with the end consumer, who bears the full VAT cost on the goods or services purchased. Throughout the supply chain, producers, suppliers, and sellers act as tax collectors on behalf of the government by charging and remitting VAT at each stage of sale or distribution.
How to apply for VAT registration?
Applying for VAT registration is online with NBR Portal. , and there are requirements you have to meet to be entitled. You need to provide the right information to support your application. This will also reduce possible delays in processing your request.
What is Registration or Enlistment?
Under the Value Added Tax (VAT) framework, all importers, exporters, and taxable suppliers are required to participate in the VAT system through formal registration or enlistment. Compliance with VAT regulations necessitates obtaining a Business Identification Number (BIN) in accordance with the prescribed procedures outlined in the VAT law. The process of acquiring a BIN, as mandated by the VAT legislation, constitutes registration or enlistment, ensuring that businesses adhere to statutory tax obligations and operate within the regulatory framework.
When Should I take Registration as a Limited Company?
According to the Value Added Tax and Supplementary Duty Act 2012, VAT registration of all limited companies has been made compulsory.
VAT Registration is Mandatory for the Following Businesses.
- Those with an annual sale price of between tk. 50 lakh and tk. 3 crore will have to register for turnover VAT.
But it does not include the following sale price, namely:
(A) the price of the exempted supply;
(B) the selling price of capital assets;
(C) the selling price of an institution or part of an economic activity; Or
(D) the value of supplies made as a result of the permanent cessation of economic activities;
- Those whose annual selling price is above Tk 3 crore will have to register for compulsory VAT.
Also the following persons / businesses have to take compulsory VAT registration irrespective of the selling price:
- All persons / organizations supplying / producing / importing goods / services for which supplementary duty is levied
- All persons / organizations who provide goods / services against tender / contract / work order
- Individuals / institutions engaged in import-export business
- Manufacturers / Service Providers / Business Suppliers / Shops located in Supershops and Shopping Malls / Establishments in City Corporations and District Cities as per General Order No. 17.
Required Documents for Import License Registration
To apply for an import license, the following documents must be submitted:
• Completed Application Form – Properly filled out with accurate details.
• Enterprise Trade License – A valid trade license for the business.
• Bank Solvency Certificate – Proof of financial stability from a recognized bank.
• Owner’s Photographs – Two recent passport-sized photos of the business owner(s).
• National ID/Passport Copy – Identification document of the business owner(s).
• IRC/ERC Certificate – Required if the business is engaged in import and export activities.
• Articles & Memorandum of Association – Applicable only for limited companies.
• TIN Certificate – Tax Identification Number certificate of the enterprise.
• Enterprise Location Map – A detailed map indicating the business premises.
• BOI Registration Copy – Proof of registration with the Board of Investment (if applicable).
• Deed of Agreement – Legal agreement for business premises (if applicable).
Ensuring all required documents are correctly prepared and submitted will help streamline the import license registration process.
VAT Registration is Mandatory for Following Scenario:
- Whose annual sales value is less than tk. 50 lakh and not related to the nature of the business mentioned above.
- Goods and services exempted from VAT mentioned in the first schedule.
What is a Business Identification Number?
Business Identification Number is the business identification number taken by an individual on the basis of turnover of his economic activities. This identification number can’t determine the nature and activities of the individual’s economic activities. It is a specific number of 9 digits by which a taxpayer can be identified. A tax payer’s state of business affairs can be identified through this number from the website of the NBR.
How Can I obtain a BIN?
If the annual turnover of your economic activities exceeds the prescribed threshold, you must submit an application to the Commissioner using Form VAT 2.1.
Following a thorough review and assessment, a Registration Certificate or Turnover Tax Enlistment Certificate will be issued in Form VAT 2.1, including a Business Identification Number (BIN), within three working days. It is important to note that not all applicants qualify for a BIN. While the application process is free and open to all, only eligible entities will be granted and authorized to hold a BIN.
VAT Rates on Services in Bangladesh
To learn about the VAT rates on Services in Bangladesh in 2025, visit this article.
Why Choose LegalSeba LLP for VAT Registration?
✅ Expertise in VAT Regulations – Our team has extensive knowledge of Bangladesh’s VAT laws and registration procedures.
✅ Comprehensive Support – We manage the entire process, from document preparation to application submission and compliance.
✅ Seamless & Efficient Processing – We ensure a hassle-free experience by minimizing delays and administrative burdens.
✅ Customized Assistance – Our services are tailored to meet your business needs, ensuring smooth VAT registration and compliance.
Contact Us
For professional assistance with VAT registration in Bangladesh, get in touch with us:
📞 Phone/WhatsApp: +8801753718223
📧 Email: [email protected]
🌐 Book a Consultation: LegalSeba.com/book-now
Let LegalSeba LLP be your reliable partner in obtaining VAT registration and ensuring full compliance with tax regulations. Contact us today to begin the process!
