VAT registration is mandatory for any trader involved in the sale of goods or services. The full meaning of the word VAT is Value Added Tax or Value Added Tax. It is now very easy to register for VAT online.
When a company sells a product or service, it adds VAT to its value. When a customer buys a product or service, he pays value added tax on that product along with the actual price of the product.
To facilitate this process, the National Board of Revenue of Bangladesh introduced online VAT registration system. This does not apply to general buyers or customers. VAT registration is mandatory for businesses.
However, if your business sector is exempt from value added tax, VAT registration is not mandatory for you.
Online VAT registration
Let me tell you a little bit about the VAT registration requirements. When you have successfully completed the VAT registration process, you will be issued a 13-digit BIN Certificate (VAT) or Business Identification Number Certificate.
Its function is exactly like our national identity card. The only difference is that the national identity card carries the identity of a Bangladeshi citizen and the BIN certificate belongs to a business organization.
Let’s not exaggerate then let’s know the beginning and end of VAT registration.
What documents are required to register for VAT?
There are a number of documents that need to be submitted when applying online, depending on the type and function of ownership of the business. It is best to scan and save the documents in advance.
TIN Certificate (TIN): Above we have talked about the type of business ownership. TIN certificates based on ownership have to be submitted online. If you have a sole proprietorship, you will need to submit your personal TIN certificate. And if it is a partnership company or a limited company, then the tin certificate of that company has to be submitted. You can find out how to do TIN Certificate online.
Trade License: There is no such thing as a TIN certificate in the case of a trade license. Scan your business trade license registration page and the latest renewal page and save it to a PDF file. Here you can find out what a trade license is and how to do it.
National Identity Card: Scanned copy of both sides of the owner’s national identity card in case of proprietorship, scanned copy on both sides of the national identity card of partners or members of the Board of Directors in case of partnership or limited company respectively.
Bank statement or solvency: A copy of the bank statement or bank solvency certificate for at least 6 months of the bank account in the name of the business entity, regardless of the type of business entity.
Certificate of Incorporation: This will only apply to Limited Companies. If your company is not a limited company, then you can avoid this part.
Import-Export License: If your organization is involved in import-export business, you must upload IRC and ERC certificates.
Production Papers: If your organization produces a product, you need to upload a list of your organization’s machinery floor equipment plan these two additional papers.
Previous VAT Certificate: A copy of any previous VAT certificate for a business organization.
Step 1: Registration
To do this, you must sit in front of a computer that has an internet connection. You can also try from mobile, but the tasks will be complicated. So let’s get started, first visit the VAT registration portal of the National Board of Revenue of Bangladesh. Click the sign up button on the website and provide the required information. For your convenience, I am briefly discussing the first steps of online VAT registration
User type: There will be two types of user type, if you are a citizen of Bangladesh and if you are not a resident then select the non-resident option.
NID: Give the number of the applicant’s national identity card.
Name: Type the name exactly to match the national identity card.
Mobile Number: Provide a mobile number that is active and not previously used for VAT registration.
Email: Enter your email. This is very important. Because, as soon as you register, a verification link will be sent to you in this email. Once the registration is completed, the confirmation email will be sent and if the application is accepted, the VAT certificate will also be sent to this email. So, be sure to use active email.
Recovery Questions: Select a question that you can easily remember and answer easily. It is used to recover a forgotten user ID or password.
Answer: Write the answer to your recovery question.
When everything is done correctly, click on the check button in the top right corner. This button works to let you know if there is a mistake. If there are any mistakes, correct them. And if No Error shows found, then click the submit button.
Step 2: Account Verification and Setup
At this stage a verification mail will be sent to your email within 10 to 15 minutes of submitting the registration form. This mail will also have your default user ID and password along with the account verification link.
You must first verify the account by clicking on the link. Then, click on the login button to login using the user ID and password in the mail.
But first you will not be allowed to login. The first time you try to login using a user ID and password, you will only be asked to change the password. Change it to your advantage and login using your user ID and new password.
After logging in to the account, select the VAT 2.1 form by clicking on the form button from the dashboard.
Step 3: Fill out the application form
Now the application page for VAT registration will appear in front of you. It is important to fill out the form correctly. Otherwise you will never get the certificate. The form is divided into different boxes. One has to give one type of information in one box. In the third step of online VAT registration, I am trying to explain briefly what information should be given in a box.
Previous BIN number: If you have already taken 11 number or 9 number certificate, its number.
(A) Registration Category: If it is a new business, if it is new and if it is old, i.e. if it has been VAT registered before, click on re-registration.
(B) Type of Ownership: Select the type of ownership of the business organization. For example, proprietorship if it is owned by an individual, partnership if it is a partnership, etc.
(C) General Information: Trade License Number and Issue Date. If it is a limited company, RJSC incorporation number and issue date. If you are a proprietorship company, give your personal TIN number and if it is a partnership company or limited company, then give the TIN number of that company. Note that the name of the NTT does not require you to do anything here. Once you enter the tin number, once you click on the check button above, it will be filled in automatically.
(D) Contact Information: Enter your business address, email and mobile number as per trade license. It would be better to give the email and mobile number given at the time of user account registration.
(E) List of Branches: If there are other branches of your business organization, provide its information.
(F) Major Area of Innocent Activity: Select your business type.
(G) Area of Manufacturing: If you are a manufacturing company, then you have to select the type of product you produce here.
(H) Area of Service: If you are an organization providing services, you have to give details here.
(I) Business Classification Code: If there is an organization involved in the manufacture or import-export of the product, the HS code of the product produced or imported-export has to be provided here.
(J) Bank Account Details: Name of the organization, bank account name, account number, bank name and branch information must be given.
(K) Information About Owner / Director / Head of NTT: Tin number, name, title, share amount, National Identity Card number of the proprietor in case of individual ownership, partners in case of partnership, board of directors in case of limited company.
(L) Business Operations: Whether your organization has any tax arrears in the previous 12 months, how much money the organization can turn over in the next 12 months, how many employees the organization has to write.
(M) Authorized Person for Online Activity: If any representative is appointed for VAT registration or payment of VAT, his / her name, surname, mobile number, email etc. should be given. It is best to provide the owner’s own information.
(N) Declaration: Select the name and surname of the applicant and click on the box next to the affidavit below.
Attachment: The above mentioned documents need to be uploaded.
Now click on the check button again. If there are any errors, you will be notified instantly. If there are any mistakes, correct them and if the “No Error Found” dialog appears, click the Submit button to submit.
Once the application is submitted, a confirmation email will be sent to your email. Save it. Now a responsible officer will check the information and documents of your application. If all goes well, the VAT registration certificate will be sent to your email within the next few working days.
The process of VAT registration did not come suddenly. It was introduced long ago. When the online application system was not introduced, traders had to appear in person at the National Board of Revenue and submit the required documents to get an 11-digit VAT registration certificate.
This system was later digitized and online VAT registration system was introduced. All traders are asked to obtain a 9-digit BIN Certificate (EOGH) or Business Identification Number through online application. Most recently, in 2019, it was upgraded to a 13-digit BIN certificate.