Published in August 2019, this guide explains the Value Added Tax and Supplementary Duty Act 2012, which replaced the VAT Act 1991 from 1 July 2019. Its nine sections cover registration and enlistment, coverage of VAT, VAT rates, the VAT mechanism, value of taxable supply, new concepts, new clarifications, VAT documentation and transition to the new Act.

It explains why the new Act was introduced: the old regime relied on price declarations, advance VAT payment through a current account, limited credit and refunds, and VAT deduction at source on almost all services. Under the 2012 Act, businesses with turnover above BDT 5 million enlist for turnover tax and those above BDT 30 million register for VAT, while importers, exporters, tender suppliers and certain others must register regardless of turnover. The guide also explains when unit or central registration applies.

The rates section covers the 15% standard rate, 5% advance tax on imports, 5% trade VAT, truncated rates of 5%, 7.5% and 10%, and specific VAT on items such as SIM cards and mild steel products. Input VAT credit is available only against supplies taxed at 15%. Net VAT is paid with the monthly return within 15 days of month end, price declarations are replaced by the input-output coefficient declaration (Mushak 4.3), and the guide lists the permitted adjustments. The rates and thresholds described are those in force in August 2019.