Invoicing and Tax regulation in Bangladesh
Invoicing Regulation in Bangladesh
In Bangladesh, the invoicing regulation is not well-structured as in some other countries but it does hold a legal obligation. It is mandatory for businesses to issue invoices for goods or services provided, as well as for their own purchases for accounting and taxation purposes. Invoices should have specific details including invoice number, date, description of goods or services, supplier's and customer's name, and total amount.
Real-Time Reporting / Fiscalization in Bangladesh
Real-time reporting or fiscalization is not mandatory in Bangladesh as the country does not have a well-established system for this purpose. Businesses are only required to submit annual financial statements and tax returns. However, progressive businesses often adopt real-time reporting to maintain better financial control and transparency.
E-Invoicing in Bangladesh
While e-Invoicing is not officially required in Bangladesh, it is highly encouraged and often preferred by businesses. This increases efficiency and speeds up the invoice process, particularly for B2B and B2G businesses, who frequently deal with a high volume of transactions. Both B2B and B2G are encouraged to go digital to streamline their operations.
VAT/GST/Tax Compliance in Bangladesh
In Bangladesh, VAT is a mandatory tax that is applied to the sale of goods and services. The general standard VAT rate in Bangladesh is 15%. Businesses providing taxable goods and services in the course of business are required to register for VAT. Compliance with tax laws, including the filing of tax returns and payment of tax liabilities, is mandatory. For B2B and B2C businesses, the VAT is typically charged on the value of goods and services provided, while for B2G, VAT may be reduced or exempted depending on the nature of business transactions.