VALUE ADDED TAX (VAT)
Introduction and challenges
Value Added Tax (VAT) is the biggest source of revenue for National Board of Revenue of Bangladesh which is comparatively new very among all sources of revenues. VAT was introduced in Bangladesh in 1991 whereas income tax has been in place since more than a few centuries. Besides the rate of changes of laws of VAT is more prevalent than those of income tax, customs and others. In the same time, VAT is more complicated than any other similar compliances.
VAT is a form of indirect tax that is added to the value of all goods (imported or supplied) and services being supplied. Value Added Tax is deposited at the Treasury and here, either the importers/exporters/suppliers of goods and services or their buyers or both are liable to compliance with VAT laws.
The compliances consist of either registration or enlistment of the individual or organizations and sometimes neither of these two required but everyone is held responsible for deduction or collection of VAT from the sale or purchase of goods or services which are subject to VAT and deposit to the same to the mint of the government.
The complexities arise on the rates of deduction and collection of VAT as there are so many different rates and the constant changes of laws and rates as well. These odds are added with the specific books to be maintained to be VAT compliant and the monthly reporting requirements.
What does Shubhankar Consulting do?
We solve the Complexity and assist our clients with novel compliance solutions
We explain complex VAT compliance issues with clarity and specificity. We develop an annual compliance tracker for a specific VAT payer or collector and review it monthly with updated provisions with accounting for the entire changes in laws and rules.
How we can help
We advise in all aspects of VAT planning, accounting and compliance
- Outsourcing: Preparation for monthly, quarterly, semi-annual and annual reporting for both individual and organizational registrants.
- Transactional: Oversee tax accounting aspects of complex transactions, including going public readiness, acquisitions, corporate restructurings, restatements, and post-bankruptcy fresh start accounting.
- Specific Technical Issues: Analysis and documentation for specific matters such as tax basis balance sheets, valuation allowance, accounting for uncertain tax positions, and share-based payments.
So, if you take our assistance, you don’t have to bother about these issues, rather you will be able to focus on your core issues. In the presence of a our VAT consultants, you don’t have to be concerned about any VAT related issues as those are being dealt by the consultants with expertise and in a professional manner. A VAT consultant can provide precise information and advice regarding the procedure of registration, amount of VAT that needs to be paid or collected and ensures all paper works relating to VAT and other taxes.