Chapter 6: VAT and Turnover Tax Accounting

40. VAT Accounting

(1) A registered person shall maintain, at their place(s) of supply, the following books, invoices, withholding certificates, and credit/debit notes, as applicable, in the prescribed forms and methods:

• Purchase Register: Except where purchased goods are resold, the registered person shall maintain all purchase records related to their economic activities in Form "Mushak-6.1".
• Sales Register: In cases where purchased goods are resold, the registered person shall maintain all sales records including purchase information in Form "Mushak-6.2".
• Tax Invoice:
  • One tax invoice per supply in Form "Mushak-6.3".
  • Invoices shall be serially numbered per financial year.
  • If supplies are made from multiple locations, separate serial invoices per location may be issued with the location's name, address, and invoice number.
  • Invoices must be issued in at least two copies: the original to the buyer, the duplicate retained by the registered person.
  • For supplies subject to withholding, the invoice serves as both the tax invoice and the withholding certificate.
• Contract Manufacturing Invoice:
  • Materials and products shall be transferred between contracted registered persons using Form "Mushak-6.4".
  • Invoices shall be serially numbered per financial year.
  • If contract manufacturing occurs at multiple locations, separate serial invoices per location with name, address, and invoice number may be issued.
  • Invoices must be issued in at least two copies: original to the recipient, duplicate retained by the supplier.
  • For products produced under contract, a tax invoice in Form "Mushak-6.3" shall be issued to the rightful owner upon delivery for payment due or received.
• Goods Transfer Invoice:
  • Products transferred between branches shall be documented in Form "Mushak-6.5".
  • Invoices shall be serially numbered per financial year.
  • Separate invoices per location may be issued for multi-location transfers, with name, address, and invoice number.
  • Invoices must be issued in at least two copies: original to the receiving branch, duplicate retained by the sending branch.
• Withholding Tax Certificate:
  • For supply to a withholding entity, issue a tax invoice in Form "Mushak-6.3".
  • Registered or listed recipients shall issue a withholding certificate to the supplier in Form "Mushak-6.6" within 3 working days of payment.
  • Non-registered recipients shall issue the certificate within 15 days of payment, or within 3 working days of notification under Rule 38(4), if applicable.
  • Withheld amounts must be deposited with the government treasury under the relevant Customs, Excise, and VAT jurisdiction.
  • A single certificate may cover multiple supplies based on issued invoices (Form "Mushak-6.3").
• Credit and Debit Notes: Issued under Rule 27 in Form "Mushak-6.7" (Credit Note) and Form "Mushak-6.8" (Debit Note).

Notes:

• "Debit Note" is a supplementary invoice issued under Bangladesh Accounting Standards, Financial Reporting Standards, and Auditing Standards, or internationally recognized accounting principles, to make increasing adjustments to previously issued invoices.
• "Credit Note" is a supplementary invoice under the same standards, to make decreasing adjustments.
• Registered persons may maintain additional information in their own format, provided the form name, all prescribed information, and minimum prescribed size are included.
• Defective or incomplete tax invoices, withholding certificates, debit notes, or credit notes shall not be considered valid for adjustment or exemption.
• Registered or listed persons shall maintain accounts, reports, and audits according to Bangladesh Accounting Standards, Financial Reporting Standards, and Auditing Standards.
• Documents maintained under these rules shall be considered commercial documents and used to determine tax liability.
• Registered persons cannot simultaneously maintain the prescribed forms and their own format.

41. Turnover Tax Accounting

Any listed person shall maintain at their place of supply:

• All purchase and sales accounts in Form "Mushak-6.1" and "Mushak-6.2".
• Turnover tax invoices shall be issued as follows:
  • One turnover tax invoice per supply in Form "Mushak-6.9".
  • Invoices shall be serially numbered per financial year.
  • If supplies are made from multiple locations, separate serial invoices per location with address and invoice number shall be issued.
  • Invoices must be issued in at least two copies: original to the buyer, duplicate retained at the place of business.

42. Submission of Purchase-Sales Information

• For any supply exceeding BDT 200,000:
  • Suppliers shall submit details of the relevant VAT or turnover tax invoices in Form "Mushak-6.10" online to the VAT computer system at or before filing the return.
  • Recipients shall submit details of received invoices exceeding BDT 200,000 in Form "Mushak-6.10" online at or before filing the return.
• If a registered or listed person cannot submit information online, it shall be submitted to the Commissioner.
• The Board may issue guidelines to define procedures, structure, security, processing, and software requirements for online submission.
• A list of approved software shall be published on the Board's website.
• With proper infrastructure, data from POS, ECR, software, or other sales machines may be accepted by the VAT computer system from the date specified by the Board.
• Existing software may continue to be used if updated to comply with the Board's guidelines.
• Automatic submission via registered systems under sub-rules 3, 5, or 6 does not require duplicate submission in Form "Mushak-6.10".