TRW & Co · Tax and VAT
VAT Registration and BIN for Chattogram Businesses
VAT registration Bangladesh law requires applies once annual turnover passes the registration threshold, or for certain activities whatever the turnover. Registration is online and produces a Business Identification Number (BIN). Smaller businesses enlist for turnover tax. In 2026 a BIN has become essential for banking, trade licences and customs clearance in Chattogram.
Key pointA business that misses the threshold date can be registered by the Commissioner from the date it should have registered, leaving it to pay VAT it never charged its customers.
At a glance
Governing law
The VAT and Supplementary Duty Act 2012, in operation since 1 July 2019, with the 2016 Rules, NBR orders and annual finance laws.
Thresholds
PwC reports registration above Tk 50 lakh turnover and turnover-tax enlistment from Tk 30 lakh; confirm current figures with the NBR before relying on them.
Online BIN
Applications are made on the online VAT system; the NBR FAQ says the certificate with BIN issues within three working days.
Central registration
One registration can cover the central unit and all branches; a branch with separate accounts may register separately as its own taxpayer.
2026 changes
The Finance Act 2026 made a BIN or enlistment certificate mandatory for bank accounts, loans, trade licence renewal and other touchpoints, according to PwC.
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The short answer: VAT registration Bangladesh businesses need
VAT registration Bangladesh law requires is triggered by turnover or by the type of business. Under the Value Added Tax and Supplementary Duty Act 2012, a business whose annual turnover exceeds the registration threshold must register for VAT, receive a Business Identification Number (BIN) and charge VAT, usually at the standard 15 per cent. Smaller businesses above a lower enlistment threshold enlist for turnover tax instead. Some activities need registration whatever the turnover.
Registration is made online through the NBR's online VAT system. For most Chattogram businesses the file is administered by the Customs, Excise and VAT Commissionerate, Chattogram. As of October 2026, the Finance Act 2026 has made a BIN or enlistment certificate a precondition for many everyday business steps, which means registration is no longer something a growing business can postpone.
This guide covers who must register, the thresholds, central and branch registration, the online process, updating details and the mistakes we see most often. For disputes and audits, see our VAT lawyers in Chattogram.
The legal framework for VAT registration
The VAT and Supplementary Duty Act 2012 came into operation on 1 July 2019, replacing the VAT Act 1991. Chapter Two deals with registration and turnover tax enlistment. It is supported by the VAT and Supplementary Duty Rules 2016, NBR general orders and statutory regulatory orders, and amended by each year's finance law.
The key provisions are short. Section 4 requires registration from the first day of a month for a person whose turnover in the previous twelve months exceeded the registration threshold, or whose expected turnover in the next twelve months will exceed it. Section 6 requires an application to the Commissioner, who issues a VAT registration certificate containing a BIN. Section 8 permits voluntary registration, and section 10 requires businesses between the enlistment and registration thresholds to enlist as turnover taxpayers.
Section 12 lets the Commissioner register or enlist a business on his own motion if it should have applied but did not, and section 14 requires registered and enlisted persons to report changes in name, address, places of business, bank accounts and activities.
Who must register: thresholds and mandatory categories
The thresholds are set by the finance laws and have changed several times. An ordinance amending the VAT Act in January 2025, described by DFDL, reduced the registration threshold sharply. PwC's Bangladesh tax summary now states that VAT registration is required once turnover exceeds Tk 50 lakh, and that suppliers with turnover between Tk 30 lakh and Tk 50 lakh pay turnover tax at 4 per cent and obtain an enlistment certificate.
According to PwC's summary of the Finance Act 2026, the enlistment threshold stayed at Tk 30 lakh after a proposal to change it was not enacted, and the government may now notify sector-specific turnover tax amounts, with the 4 per cent rate applying until it does. Because the NBR's own online FAQ still shows older figures, confirm the current thresholds on the NBR or the VAT portal before relying on them.
| Category | Typical trigger | What you receive | Main obligations |
|---|---|---|---|
| Mandatory VAT registration | Turnover above the registration threshold (reported as Tk 50 lakh) | VAT registration certificate with BIN | Charge VAT, issue tax invoices, file returns, keep records |
| Registration regardless of turnover | Specified activities, such as goods or services subject to supplementary duty | VAT registration certificate with BIN | Same as above |
| Turnover tax enlistment | Turnover between the enlistment and registration thresholds (reported as Tk 30 lakh to Tk 50 lakh) | Turnover tax certificate with BIN | Pay turnover tax; file returns |
| Voluntary registration | Below the threshold but wants to register | VAT registration certificate with BIN | Must stay registered for at least one year |
| Separate branch registration | Branch keeping separate accounts and records | Separate BIN for that branch | Branch treated as a separate taxpayer |
Importers, exporters and Custom House users
For Chattogram businesses that trade through the port, the practical rule is simple: you need a BIN. The NBR's VAT FAQ describes importers, exporters and taxable suppliers as required to take part in the VAT system through registration or enlistment, and the Bangladesh Customs import procedure lists the VAT registration or BIN certificate among the documents for a bill of entry. Import VAT and advance tax are collected at the Custom House against that BIN. See our guides on how to clear goods at Chattogram Custom House and IRC and ERC licensing.
Central and branch registration
Section 5 of the Act provides for a single VAT registration covering a person's central unit and all branch units. The NBR describes this as central registration. A branch that keeps its accounts and records independently from the central unit may instead register separately, and a separately registered branch is treated as a separate taxpayer.
The choice has consequences. Under central registration one return covers the whole business, which simplifies filing but requires the head office to collect accurate data from every branch. Separate registration localises compliance but means that movements of goods between separately registered branches of the same activity are not treated as supplies. Groups with a Dhaka head office and a Chattogram factory or warehouse should decide this deliberately rather than by default.
How VAT registration Bangladesh works online, step by step
The process below follows the NBR's published guidance and the VAT Act. Form numbers and screens change from time to time, so follow the current portal instructions.
- Decide the category. Work out whether turnover, activity or a business need (such as importing or bidding for contracts) requires registration, enlistment or voluntary registration, and whether to register centrally or by branch.
- Gather business details. Prepare the business name and type, trade licence, e-TIN, company or partnership details, addresses of all business premises, bank account details, principal activities and expected turnover. The NBR's FAQ says no documents need to be submitted with the application itself, but the information must match your records.
- Create a portal account. Open an account on the online VAT system using the authorised person's details.
- Submit the application. Complete the registration or enlistment application online, using the VAT-2.1 form described in the NBR FAQ, or VAT-2.2 where applicable.
- Receive the certificate and BIN. The Commissioner issues the certificate containing the BIN. The NBR FAQ says this is done on form VAT-2.3 within three working days, and that registration takes effect from the first day of the following month.
- Display the certificate and start compliance. Section 13 requires the certificate to be displayed at the place of business. Set up tax invoicing, purchase and sales records and return filing from the effective date.
According to PwC's summary, the Finance Act 2026 provides for VAT registration to be fully automated on the e-VAT system, with a BIN issued on submission of valid information. Until that is fully live, expect some cases to be reviewed by the circle or division office in Chattogram.
Which VAT office handles a Chattogram business
Once VAT registration Bangladesh processes are complete, the business is allocated to a VAT office. Most Chattogram businesses fall under the Customs, Excise and VAT Commissionerate, Chattogram, which the NBR lists among its field offices and which works through divisional and circle offices across the city and district. The Large Taxpayers Unit (VAT) in Dhaka administers the largest taxpayers. Import-stage VAT is collected separately by the Chattogram Custom House, and export-oriented units in bonded or zone arrangements deal with the Customs Bond Commissionerate or zone authorities as well. Knowing your circle matters, because notices, audits and requests for documents come from it, and replies should be addressed there.
After registration: updating, returns and cancellation
VAT registration Bangladesh businesses obtain is not a one-off event. Section 14 requires changes to be reported, and the NBR FAQ says alterations are reported online on form VAT-2.6 within 15 days, with a change of business location notified on VAT-2.7 in advance. Cancellation is applied for on VAT-2.4 when a business stops trading or no longer needs to be registered.
Registered businesses must file returns. The Finance Act 2026 briefly made quarterly returns the default, but the VAT and Supplementary Duty (Amendment) Ordinance gazetted on 14 October 2026 restored monthly returns, so check the current filing period with your VAT circle before each deadline. Our guide to VAT return filing sets out the details, and our article on input VAT credit explains how to recover VAT paid on purchases.
Register before you need the BIN, not when a bank, buyer or the Custom House asks for it. Under the Finance Act 2026, PwC reports that a BIN or enlistment certificate is required for bank and financial accounts, loans, trade licence renewal, utility connections and other key touchpoints, so a missing BIN can stall ordinary business.
An illustrative scenario
Illustrative only; the parties are generic. A Chattogram logistics start-up begins as a small trading business and, within its first year, wins contracts with two large corporate customers. Its turnover passes the registration threshold in the tenth month, but nobody notices because the founders are focused on operations.
One customer, which is a withholding entity, asks for a tax invoice and the supplier's BIN before paying. The start-up applies urgently, but it has already exceeded the threshold for some months. On enquiry, the Commissioner could register it from the date it should have registered and assess VAT on past sales, plus interest and penalties.
The better course is a monthly turnover check against the threshold, early voluntary registration if customers are likely to need tax invoices, and a review of contracts so that prices are stated exclusive of VAT. Proper VAT registration Bangladesh rules require also protects the business when it later raises investment or sells shares, because buyers' due diligence will test it. See our guide to VAT deducted at source.
A BIN is now the key that opens a bank account, renews a trade licence and clears a container. Treat VAT registration as infrastructure, not paperwork.
Risks and common mistakes
Registering late
Section 4 makes registration compulsory from the first day of the month after turnover passes the threshold, or as soon as expected turnover will pass it. A business that registers late may be registered by the Commissioner from the earlier date under section 12 and assessed for VAT it never charged its customers. Because the VAT cannot usually be recovered from past customers, it becomes a direct cost. Monitor rolling twelve-month turnover monthly.
Choosing central or branch registration without thinking
Central registration simplifies compliance but requires reliable data from every branch, while separate branch registration multiplies returns and records. Changing structure later is possible but creates transitional work. Groups with operations in both Dhaka and Chattogram, or with factories in an EPZ and sales outside it, should map their supply chains first and choose the structure that matches how their accounts are actually kept.
Not updating details
Addresses, bank accounts, business activities and authorised persons change. Section 14 requires them to be reported, and the NBR FAQ sets a 15-day period for most changes. Out-of-date details cause mismatches with bank data and customs records, delay refunds and can trigger enquiries. Assign responsibility for keeping the VAT profile current, especially after a move, a new branch or a change of directors.
Assuming enlistment means no compliance
Turnover taxpayers have lighter obligations than registered persons but are not exempt. They pay turnover tax, file returns and must register for VAT once they pass the registration threshold. An enlisted business that grows quickly can fall behind without noticing. Review enlistment status as part of each quarter's accounts.
Ignoring non-resident and imported services rules
Foreign suppliers making taxable supplies in Bangladesh without a registration may need a VAT agent under section 19, and VAT on many imported services is reverse charged to the Bangladeshi recipient under section 20. Chattogram companies paying for foreign software, consultancy or shipping services should check whether they must account for VAT on those payments. Our tax lawyers can review cross-border payments.
Cross-border and foreign investor angle
Foreign investors setting up in Chattogram should build VAT registration into the incorporation timeline. Opening bank accounts, renewing trade licences and clearing imported machinery all require a BIN, so registration should follow company incorporation and the trade licence closely. Investors registering with the Invest Bangladesh Authority, which has succeeded BIDA under the Invest Bangladesh Act 2026, or with BEPZA or BEZA should check how zone rules interact with VAT registration.
TRW & Co's offices in Dhaka, Singapore, Dubai and London coordinate set-up work for foreign groups, and our company registration lawyers handle incorporation, licences and registrations in sequence.
What to do next: a VAT registration checklist
- Calculate rolling twelve-month turnover and expected turnover.
- Check whether your activity requires registration regardless of turnover.
- Decide between central and separate branch registration.
- Collect trade licence, e-TIN, company details, premises and bank information.
- Apply online and keep a copy of the certificate and BIN.
- Display the certificate and set up tax invoicing and records.
- Diary return deadlines and the 15-day period for reporting changes.
VAT registration Bangladesh businesses get right at the start saves money in every later audit. For help with registration, structure or a VAT notice, contact our Chattogram office at Room 4022, Annex 2, District and Sessions Judge Court Building, Court Hill (Porir Pahar), Kotwali, Chattogram 4000, or get in touch at info@trw.co or +880 1779 127165.
Frequently asked questions
01What is the VAT registration threshold in Bangladesh?
The threshold is set by finance law and has changed several times. Following an amending ordinance in January 2025, PwC's Bangladesh tax summary states that registration is required once turnover exceeds Tk 50 lakh, with turnover tax enlistment for suppliers between Tk 30 lakh and Tk 50 lakh. PwC's summary of the Finance Act 2026 says the enlistment threshold was kept at Tk 30 lakh. Some NBR pages still show older figures, so confirm the current threshold on the NBR or VAT portal before deciding not to register.
02How do I get a BIN in Bangladesh?
Apply online through the NBR's online VAT system. Create an account, complete the registration or enlistment application with your business details, premises, bank accounts and activities, and submit it. The NBR FAQ says the certificate containing the BIN is issued within three working days and registration takes effect from the first day of the following month. According to PwC, the Finance Act 2026 provides for fully automated registration with a BIN issued on submission of valid information.
03Do importers need VAT registration even with low turnover?
In practice, yes. The NBR describes importers and exporters as required to participate in the VAT system through registration or enlistment, and the Bangladesh Customs import procedure lists the BIN certificate among the documents for a bill of entry. Import VAT and advance tax are collected at the Custom House against the BIN. Without one, clearing goods at Chattogram is not practical. Banks opening letters of credit will also ask for it.
04Can one company have a single VAT registration for all branches?
Yes. Section 5 of the VAT Act provides for one registration covering the central unit and all branch units, which the NBR calls central registration. A branch that keeps its own accounts and records separately may instead register separately and is then treated as a separate taxpayer. Movements of goods or services between separately registered branches of the same activity are not treated as supplies. Choose the structure that matches how your accounts are kept.
05What happens if I do not register for VAT on time?
Section 12 allows the Commissioner, after enquiry, to register or enlist a person who should have applied but did not. The business can then be assessed for VAT on past supplies, with interest and penalties, even though it did not charge VAT to its customers at the time. It may also face practical problems, since a BIN is needed for banking, trade licence renewal and customs. Registering promptly, or voluntarily ahead of the threshold, avoids this exposure.
06How do I update or cancel my VAT registration?
Section 14 requires registered and enlisted persons to report changes in name, address, places of business, bank accounts and activities. The NBR FAQ says most changes are reported online on form VAT-2.6 within 15 days, a change of business location is notified on VAT-2.7 in advance, and cancellation is applied for on VAT-2.4. A voluntarily registered business must remain registered for at least one year. On cancellation, outstanding tax must be paid and a final return filed.
Sources and official materials
- VAT and Supplementary Duty Act, 2012 (Bangladesh laws portal) — Registration, enlistment and central registration
- Online VAT system (IVAS) — Online registration, BIN and returns
- NBR VAT FAQ — Forms, timelines and central registration
- PwC Worldwide Tax Summaries: Bangladesh other taxes — Current registration and turnover tax thresholds
- Finance Act 2026: key amendments (PwC Bangladesh) — BIN touchpoints, automation and returns
- Bangladesh: updates on amendments to the VAT law (DFDL) — January 2025 ordinance and threshold changes
General information only, current as at 2 November 2026. It is not legal advice and does not create an advocate–client relationship. It reflects the law of Bangladesh unless stated otherwise, and the law, court practice and official fees change frequently. Check current official sources and take advice on the facts of your matter.
