Chapter 10: Carry Forward and Refund of Negative Net Balance

52. Refund

1. A registered person may apply to the Commissioner in Form "Mushak-9.1" for the refund of money.
2. Upon proper receipt of the application and fulfillment of conditions under Section 70, the Commissioner shall deposit the refundable amount into the applicant’s bank account or issue a crossed cheque in their favor.
3. After approval of a reducing adjustment, the registered person must utilize it within six (6) subsequent tax periods.
4. If the registered person fails to utilize the reducing adjustment within the six tax periods, they may apply for a refund in Form "Mushak-9.1".
5. The Commissioner shall deposit the refundable amount into the applicant’s bank account or issue a crossed cheque within three (3) months of receiving the application.
6. A registered person may adjust any overpaid tax against returns filed within six (6) subsequent tax periods.
7. If the reducing adjustment is not utilized within the six periods, the registered person may apply for a refund in Form "Mushak-9.1", and the Commissioner shall process the refund as per this rule.

53. Refund in Case of Construction, Housing, Land Development, and Other Activities

A registered person conducting construction, housing, land development, or other economic activities jointly shall carry forward negative balances as per Section 68(5).

54. Utilization of Refund Amount

For the purpose of Section 70(3), the refundable amount shall be utilized as a reducing adjustment according to Sections 68(4) and (5).

55. Refunds to Diplomatic and Other International Organizations

1. For tax refunds under Section 71(1) to diplomatic or international organizations, the responsible person of the organization shall apply to the Commissioner in Form "Mushak-10.1".
2. The application with proof of tax payment must be submitted within six (6) months of payment.
3. Upon verification of the application and proof of payment, the Commissioner shall, subject to Section 71(1)(a) and (b):
   • For online applications: deposit or issue a cheque within two (2) months from submission.
   • For other methods: deposit or issue a cheque within three (3) months from submission.
4. If there is any discrepancy between approved refundable amount and claimed amount, the applicant shall be notified with reasons, and a hearing shall be provided if requested.
5. If the applicant has any dues under law (interest, fines, penalties, etc.), it shall be deducted from the refundable amount, and the balance (if any) shall be refunded.

56. Refund for Foreign Tourists

1. Foreign tourists may claim a refund of VAT paid on eligible purchases.
2. Refunds do not apply to:
   • Export prohibited goods;
   • Firearms, explosives, or similar products;
   • Other products as specified by Board order.
3. Refund eligibility requires that the tourist:
   • Resides in Bangladesh 180 days or less in one registration year;
   • Is not an airline crew member;
   • Departs via a Bangladesh international airport.
4. Refund eligibility also requires that the tourist:
   • Purchases from a "VAT Refund For Tourists" marked shop;
   • Buys for use outside Bangladesh;
   • Each invoice (excluding VAT) exceeds BDT 5,000;
   • Departs within three (3) months of purchase.
5. Registered or listed persons authorized for VAT refund issuance shall:
   • Verify the tourist’s passport and eligibility, then issue a "Mushak Refund Certificate (VAT Refund Certificate)" in Form "Mushak-10.2";
   • Attach the invoice and provide it to the tourist.
6. At international airports, customs officers shall:
   • Verify the "Mushak Refund Certificate" and purchased goods;
   • Approve refund online and make payment if documents and goods are in order.
7. The Board may deduct a reasonable service charge from refundable amounts.

57. Selection of Registered Person for Issuance of VAT Refund Certificate to Foreign Tourists

1. The Commissioner may authorize persons who:
   • Have at least 5 tourist sales per day on average over the last month;
   • Have a VAT certificate;
   • Have the infrastructure and trained staff to conduct the activity.
2. The authorized person shall apply in Form "Mushak-10.3".
3. The Commissioner shall approve the issuance of VAT refund certificate within 15 days of application verification.
4. If verification finds discrepancies, the Commissioner may provide a hearing, reject the application, or take other appropriate action.

Chapter 11: Tax Determination by Commissioner: Negation of Tax Benefits

58. Negation of Tax Benefits under Special Scheme

1. The Commissioner may determine the liability of a person as if the special scheme was not adopted or implemented, or under the subsequent provisions to ensure proper assessment, determination, negation, or reduction of tax benefit.
2. To achieve this, the Commissioner may take any or all of the following actions:
   • Consider a real event as not having occurred;
   • Consider an event that did not occur as having occurred, and if reasonable, determine:
     • The event occurred at a specific time;
     • The event occurred through the involvement of a specific person.
   • Consider a real event as having occurred at a different time or through the involvement of a specific person, whether or not the person caused it.
3. When the Commissioner determines liability under this provision, the affected person shall be given a hearing and notified of the assessment for each affected tax period, along with a tax assessment notice.