General

Bangladesh's National Revenue Service (NBR) is preparing to impose requirements on all foreign organisations by amending the VAT law in the proposed fiscal year 2022-23, following the inclusion of foreign tech companies in taxation in 2020, Bangladesh reported recently.

Many global companies such as Samsung and General Electric have long been doing business in Bangladesh through branches which are not required to obtain VAT registration (in the name of Business Identification Number BIN NO.) as their turnover is related to the parent company's account Hook up, but from now on all branches of foreign companies will have to register. According to NBR officials, the move will make it easier for the NBR to collect VAT on branches and liaison offices of foreign projects or organisations. At the same time, a large number of global NGO projects, contacts and affiliate activities will be subject to corporate compliance controls.

NBR First Secretary Kazi Farid Uddin said the new VAT law will help these companies and projects to have their accounts compliant, the same applies to companies that participate in any tenders, engage in import and export business, take branches or liaison offices or act as VAT agents . Earlier in 2020, the NBR mandated VAT registration in Bangladesh for tech giants including Google, Facebook, YouTube and Amazon, which are now filing regular returns.