As per the 3rd schedule VAT rates are:

      v For Traders @ 5%

      v For the supply of medicine @ 2.4%

      v For the supply of Diesel, Kerosene, Octane, Petrol, Furnace oil & LP gas @ 2%

In Bangladesh, the submission of Withholding VAT Return is a legal requirement under the Value Added Tax and Supplementary Duty Act, 2012 (Section-64) for certain entities that deduct VAT at source when making payments.

Who Needs to Submit Withholding VAT Return?

     v Government entities

     v Autonomous bodies

     v Banks

     v Insurance companies

     v NGOs

     v  Any organization registered as a withholding entity by the National Board of Revenue (NBR)

These entities are legally required to deduct VAT at source (generally 2% to 15%, depending on the service) and submit it to the government.

Due Date for Withholding VAT Return Submission

VAT returns must be submitted within 15th of the following month / days after the end of each tax month. Penalty for Late Submission: BDT 5,000 or more, depending on the delay and nature of non-compliance. 

Example: VAT withheld in August must be reported and deposited by 15th September.

How to Submit Withholding VAT Return?

Submission is done through the Online VAT (Mushak-9.1) System (VATS) at: https://vat.gov.bd