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 tax certificates, and credit/debit notes, as applicable, in the prescribed forms and methods:

• Purchase Register: Except where purchased goods are resold, all purchase records related to economic activities shall be maintained in Form "Mushak-6.1".
• Sales Register: In cases where purchased goods are resold, all sales records including purchase information shall be maintained 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.
  • Separate serial invoices may be issued per location if supplies are made from multiple locations, including location name, address, and invoice number.
  • Invoices must be issued in at least two copies: original to the buyer, duplicate retained by the registered person.
  • For supplies subject to withholding, the invoice serves as both tax invoice and 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.
  • Separate invoices may be issued per location for multi-location operations, including location name, address, and invoice number.
  • 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:
  • Goods transferred between branches shall be documented in Form "Mushak-6.5".
  • Invoices shall be serially numbered per financial year.
  • Separate invoices may be issued per location for multi-location transfers, including location 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 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 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 are commercial documents and used to determine tax liability.
• Registered persons cannot simultaneously maintain the prescribed forms and their own format.

41. Turnover Tax Accounting

• All purchase and sales accounts shall be maintained 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.
  • Separate serial invoices may be issued per location, with address and invoice number.
  • Invoices must be issued in at least two copies: original to the buyer, duplicate retained at the place of business.

42. Submission of Purchase and Sales Information

• For any supply exceeding BDT 200,000:
  • Suppliers shall submit details of 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 online, it shall be submitted to the Commissioner.
• The Board may issue guidelines for the process, data structure, security, processing, and software requirements.
• Approved software list shall be published on the Board’s website.
• With proper infrastructure, data from POS, ECR, software, or other sales machines may be accepted from the date specified by the Board.
• Existing software may continue if updated to comply with Board guidelines.
• Automatic submission via approved systems does not require duplicate submission in Form "Mushak-6.10".

43. Documents Issued by or to a Representative

• If a taxable supply is provided by a registered representative on behalf of the principal supplier, the required tax invoice, debit or credit note may be issued by the representative:
  • Such documents must be issued in the name of the principal supplier, including their name, address, and business identification number.
• If a taxable supply is received by a registered representative on behalf of the principal recipient, the tax invoice, debit or credit note may be issued to the representative:
  • Such documents must include the principal recipient’s name, address, and business identification number.

44. Restrictions Regarding Duplicates

• Only one original tax invoice may be issued for a taxable supply. If lost, a duplicate clearly marked "Duplicate" may be issued by the person who issued the original.
• Only one original credit or debit note may be issued for a supply. If lost, a duplicate clearly marked "Duplicate" may be issued by the person who issued the original.