Bangladesh’s National Board of Revenue (NBR) has simplified the VAT exemption rules for “deemed exports,” which is the supply of goods and services to export-oriented industries within the country. The clarified rules now mandate five conditions for this exemption, notably requiring suppliers to use internal back-to-back letters of credit, conduct transactions in foreign currency, and ensure exporters operate under the bonded warehouse system. An NBR official stated this move is intended to streamline operations for local suppliers and prevent double taxation, benefiting key sectors like garments, leather, and manufacturing. Industry representatives have welcomed the change, expecting it to address previous confusion and encourage non-bonded factories and suppliers, thereby potentially boosting the nation’s overall export momentum.
Source: thedailystar.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Bangladesh"
- NBR Clarifies VAT Exemption Conditions for Exporters on Local Purchases
- VAT Waiver on Vessel Imports: Opportunity for Growth with Rigorous Compliance Conditions
- Bangladesh Exempts VAT on Large Vessel Imports to Boost Trade and Employment Opportunities
- Government Grants VAT Exemption on Import of Large Sea-Going Vessels
- NBR Halts Manual VAT Audits to Prevent Corruption, Plans Automated System Implementation
