BIN Registration

Value Added Tax (VAT) functions as an indirect tax settled by the consumer via a registered entity. VAT on specific goods or services is calculated by aggregating the actual value added to those items, adjusting for input tax payable against the supplied goods or services.

To obtain a BIN / VAT Registration Certificate, the following documents are necessary: • NID • Picture • Phone Number • Email address • Copy of valid Trade License • Tax Identification Number (TIN) • Bank Solvency Certificate • Rental Deed • Copy of membership certificate from local Chamber of Commerce and Industry or relevant Trade Association For 100% foreign equity companies: • Passport • BIDA Registration Certificate For Partnership Business: • Incorporation Certificate For Limited Company: 1. Certificate of Incorporation 2. Articles of Association 3. Memorandum of Association

Following VAT registration, you are required to file a VAT return by the 15th of every month using the NBR VAT online services.

The Value Added Tax system is an automatic taxation process reliant on input tax credits against sales or supplies. Suppliers credit the VAT paid on purchases against the VAT collected on supplies, paying only the net VAT amount. Consequently, the seller collects VAT included in the buyer's price and remits the net VAT amount to the Government treasury after adjusting for purchase-level VAT. As a consumer tax, the final consumer bears the entire applicable VAT amount. Intermediaries, such as producers and suppliers, collect VAT on behalf of the Government at every sale stage and deposit it into the treasury. The ultimate VAT payer is the final consumer of the goods or services. The supplier or seller realizes this VAT from the purchaser at each sales level for deposit to the Government.

Applying for a VAT registration number requires meeting specific entitlement requirements. Providing accurate information to support your application is essential to minimize potential processing delays.

Under the VAT system, any importer, exporter, or taxable supplier must engage with the VAT procedure through registration or enlistment. They must comply with VAT law by obtaining a Business Identification Number (BIN) in the prescribed manner. This process of securing a BIN under the purview of VAT law is defined as registration or enlistment.

Per the Value Added Tax and Supplementary Duty Act 2012, VAT registration is compulsory for all business entities falling under specific categories. Turnover VAT Registration: Required for those with an annual sales turnover between Tk. 50 lakh and Tk. 3 crore. This excludes: • Price of exempted supplies • Selling price of capital assets • Selling price of an institution or part of an economic activity • Value of supplies from permanent cessation of economic activities Compulsory VAT Registration: Required for those with an annual selling price exceeding Tk. 3 crore.

The following must register for VAT regardless of selling price: • Persons/organizations supplying, producing, or importing goods/services subject to supplementary duty. • Persons/organizations providing goods/services against tender, contract, or work order. • Individuals/institutions in import-export business. • Manufacturers, Service Providers, Business Suppliers, Shops in Super Shops/Shopping Malls, and Establishments in City Corporations and District Cities as per General Order No. 17.

VAT registration is not mandatory for businesses whose annual sales value is less than Tk. 50 lakh and who are not involved in the specific business natures mentioned above. This also applies to goods and services exempted from VAT as listed in the first schedule.

A Business Identification Number is assigned to an individual based on the turnover of their economic activities. This specific 9-digit number identifies a taxpayer but does not determine the nature of their activities. A taxpayer's business status can be verified via the NBR website using this number.

If your economic activity turnover exceeds the prescribed limit, submit an application to the Commissioner using Form VAT 2.1. Upon proper scrutiny, a Registration Certificate or Turnover Tax Enlistment Certificate (Form VAT 2.1) containing a BIN will be issued from the VAT system within three working days. Not everyone is entitled to a BIN. While application is free, only eligible entities will receive and hold a BIN.

• How can I get my BD bin number? To obtain a BIN, you must be carrying on an enterprise. Successful application details are stored in the IVAS (Integrated VAT Administration System) at NBR. Options exist if the application is refused. • What is the difference between VAT and bin registration? VAT is a consumption tax applicable to value added at production or distribution stages. BIN is a unique identification number assigned to businesses for regulatory purposes. • What is a bin number? On every credit card, you will find a bank identification number (BIN). The BIN represents the card's first six to eight numbers, which together identify the financial institution that issued the card.