- NBR clarified on 9 October that exporters meeting certain conditions will qualify for VAT exemption on local purchases, treating them as deemed exports
- Supply must be made to actual exporter, against local back-to-back LC, with foreign currency payment, and exporter must maintain bonded warehouse
- Supply must be listed in exporter’s utility declaration or utility permission submitted through associations to customs authorities
- BGMEA welcomed the clarification as it resolves long-standing complications where VAT offices often imposed VAT despite exemptions on local procurement worth 10% of export value
- The move is seen as positive step by NBR toward improving ease of doing business for exporters in Bangladesh
Source: tbsnews.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.
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