Since July 1, 2019, foreign businesses selling digital services to customers in Bangladesh must apply VAT to their sales there. However, the digital services could fall into a standard (15%) or reduced VAT rate (5%) category.
In its 2018-19 spending still up in the air that a virtual business needed to apply the 5% VAT framework to their deals. The term virtual business was subsequently explained to mean advanced stages like Facebook, YouTube, and Google.
In any case, from that point forward the meaning of impacted computerized administrations has been solidified further. Today, some computerized administrations may really draw in the Bangladesh standard VAT pace of 15%. Bangladesh characterizes the administrations that the decreased VAT pace of 5% ought to apply to as Information Technology Enabled Services (ITES) and the accompanying administrations (list isn’t thorough) are incorporated:
Digital Content Development and Management
Animation (both 2D and 3D)
Geographic Information Services (GIS)
Software Development and Customization
Digital Data Analytics
Business Process Outsourcing
Data Entry and Data Processing
Digital Graphics Design and Computer-Aided Design
Search Engine Optimization
Imaging and Archiving
Overseas Medical Transcription
Cyber Security Services
E-Procurement and E-Auction
The government of the people’s republic of Bangladesh encourages people to ensure about present vat rules of Bangladesh. In recent few years, we have seen that Digitalized businesses such as e-business and traditional tech-business growing rapidly from the beginning of the pandemic. Online shopping and internet-based business have rapidly been grown up in the last few years. Buying products and services remotely is a priority choice for the customers. In industrial revolution 4.0 has got its level best output now from its beginning in 2012.
Similarly, the present marketing and product management system is going similarly with a new strategy of marketing 4.0 which is a complete combination of digital and traditional strategy of marketing.
In this era of the technology revolution, the bigger giants of the tech industry such as google, amazon, Alibaba are planning to come and take place to the Bangladesh market. Regarding this, the Bangladesh government has decided to ensure standard vat on their selling.
SmartVAT is a VAT Management Software that covers all categories of your VAT Registered business authorized by the National Board of Revenue (NBR). Additionally, this VAT Software can be integrated with any third-party application. Especially, data fetching and migrations become key advantages of our application.
VAT Software is used to keep track of sales, purchases, inventory, production, and also payment transactions before generating government-mandated reports. Whereas, users can also directly apply a final VAT return to the government system (iVAS in Bangladesh) using the SmartVAT Software.
Our SmartVAT is a one-of-a-kind VAT Software for seamlessly managing VAT operations in accordance with the National Board of Revenue’s (NBR) compliance with the VAT Act of 2012 accordingly. Significantly, SmartVAT Software was created by a unique team led by some young buds, and the entire architecture was described by a certified VAT Consultant in Bangladesh with over 27 years of experience on VAT. The DI System fully follows the NBR guideline accordingly compliant with VAT & SD ACT 2012, as of GO-16/VAT/2019.
The systems interface is readable and easy to use, and features are topnotch therefore it’s a user-friendly VAT Software system for every business. Specifically, SmartVAT Software is developed keeping compatibility with the new VAT and Supplementary Duty Rules 2016. Hence, managers do not need to think about keeping records for every transaction or keeping a separate account only for VAT calculations because SmartVAT Vat Software will be taken care of those tasks smoothly.
Now to run a bigger corporation or business according to the law of Bangladesh Government you will surlily need to pay vat on your service or product. In the case of mandatory rules of paying VAT all you need is a smart vat system.
Want to create a dynamic Smart VAT system for your organization?