VAT (Value Added Tax) is a consumption tax levied on the sale of goods and services. The VAT system in Bangladesh is administered by the National Board of Revenue (NBR), which is responsible for collecting and regulating the tax.
The standard VAT rate in Bangladesh is 15%, but there are different rates for certain types of goods and services, such as 5% for specific food items and 4% for certain pharmaceutical products. Businesses required to register for VAT with the NBR must collect VAT from their customers and pay it to the NBR.
Methods of VAT Payment in Bangladesh
VAT is a transparent tax system as the tax is added to the price of goods and services at each stage of production and distribution. This makes it easier for the government to monitor and collect taxes.
It is a fair and equitable tax based on the consumption of goods and services, which means that individuals pay taxes based on what they consume. This ensures that those who consume more pay more taxes. There are several methods for making VAT payments in Bangladesh:
- Electronic Payment: The NBR has introduced an online VAT payment system called “VAT Online,” which allows taxpayers to pay their VAT electronically using their credit or debit cards.
- Bank Payment: VAT payments can also be made through designated banks. Taxpayers can make their payments in cash or by cheque at designated branches of the banks.
- Online Fund Transfer: Taxpayers can also make their VAT payments through online fund transfers using the internet banking facilities provided by their banks.
- Mobile Financial Services: VAT payments can also be made through mobile financial services such as bKash, Rocket, and other similar services.
How To Pay VAT Challan Online?
In Bangladesh, VAT (Value Added Tax) can be paid online through the VAT Online System (VOS) provided by the National Board of Revenue (NBR). To make an online VAT payment in Bangladesh, follow these steps:
- Register on the VAT Online System (VOS) of NBR by visiting their website (nbr.gov.bd) and clicking on the “VAT Online System” link.
- From the drop-down menu, select “VAT Online Services.”
- Log in to your account on the VOS using your username and password.
- Click on the “Payment” option and select “VAT Payment.”
- Click “VAT Payment” and enter your TIN (Taxpayer Identification Number) and other required information.
- Enter the necessary information, such as the amount of VAT to be paid, the period for which the VAT is being paid, and the bank account from which the payment will be made.
- Or Choose your preferred payment method (online or mobile banking) and complete the payment process.
- Once the information is entered correctly, click the “Submit” button.
- You will be redirected to the payment gateway of the selected bank.
- Follow the instructions on the payment gateway to complete the payment.
- After the payment is successful, you will receive a confirmation message.
Note that online VAT payment is mandatory for some businesses in Bangladesh. You can contact the NBR or your local tax authority for assistance with any doubts or queries regarding online VAT payment.
Online VAT Challan Payment By Bank
Apart from the official website for VAT payment, you can also pay your VAT online through your bank account. To make an online VAT Challan payment with your bank account, you can follow the below steps:
- Visit the bank website where you have an account and check if they provide customers with online VAT Challan payment service.
- Log in to your online banking account if the bank provides the service.
- Navigate to the “Payments” or “VAT Challan Payment” section on the website.
- Enter the necessary information, such as the VAT Challan number, the amount to be paid, the period for which the VAT is being paid, and the bank account from which the payment will be made.
- Review the information you provided and click the “Submit” button.
- Once the payment is successful, you will receive a confirmation message on the website.
VAT registration is mandatory for businesses whose annual turnover exceeds a certain threshold, which varies based on the nature of the business. Registered businesses must file regular VAT returns and make timely VAT payments to the NBR.
Failure to comply with VAT regulations can result in penalties, fines, and legal action. It is essential for businesses operating in Bangladesh to understand their VAT obligations and comply with the relevant rules and regulations to avoid any legal or financial consequences.