The Books That Should Be Maintained for VAT Purposes

Preface

All BIN registered persons must maintain the books and documents at their respective places of business. For any business organization, these books and documents must be maintained at the business place for at least five years, and for a company that is 100% export-oriented, for three years. In addition to these books and documents, he must keep other records pertaining to his business activities.

?Required Books & Document

A BIN registered entity shall have to maintain the following document, whichever applies to them.

?1. Mushak-6.1: Books of accounts for purchase

?A BIN registered person shall record and preserve all purchases related to his economic activity in his purchase register, except where he sells the same goods he purchases.

??2. Mushak-6.2: Books of Accounts for sale

A BIN registered person who sells the same product which he purchases. He shall maintain the sales register and all accounts of sales related to his supplies and information regarding purchases.

Mushak-6.2.1: Books Of Accounts For Purchase And Sales

Should be Maintained by the Trader

A BIN-registered person who does not manufacture any kind of product but buys and sells the same product. They must maintain Mushak 6.2.1.

3. Mushak-6.3: VAT invoice

Every BIN registered supplier shall issue two copies of the VAT invoice of the same serial number when VAT becomes payable on the product or service supply. There is a specific format, and all information shall give correctly in this invoice.

?4. Mushka-6.4: Invoice for contractual manufacturing

?When a BIN registered person is going for contractual manufacturing, he must supply raw materials to the contract manufacturer. When supplying raw materials, he has to issue Mushak 6.4. Similarly, the contract manufacturer shall issue Mushak 6.4 at the time of transfer of manufactured goods.

?5. Mushak-6.5: Invoice for transfer of goods between branch units centrally registered

?In the case of central registration, when a BIN registered entity transfers goods from one branch to another, including the warehouse, he shall have to issue the invoice in form Mushak 6.5.

?6. Mushak-6.6: Certificate for tax (VAT) deduction at source.

?A BIN registered person who is a withholding entity shall issue to withholding certificate in the prescribed format, including all information when he withholds VAT from the supplier.

??7. Mushak-6.7: Credit note

A credit note is used for Purchase return to the supplier. For VAT purposes, specific information should be included in the credit note. Every registered person shall provide all information in a credit note per VAT act 2012, Sec 52.

??8. Mushak-6.8: Debit note.

A debit note is used for Sales returns by the purchaser. For VAT purposes, some specific information should be included in the debit note. Every registered person shall provide all information in a debit note per VAT act 2012, Sec 52.

The information which shall include in the debit/credit note is noted below (Sub sec 1)

????a. Debit/ Credit Note no, issue date and time;

????b. Name, address, and BIN number of supplier/Purchaser.

????c. Serial no, date, and time of relevant original Tax invoice.

????d. The nature of the adjustment;

????e. The effect on the amount of VAT.

????f. The Name, address, and business identification number of the recipient of the supply if the amount of VAT payable on the supply is more than Taka 5 000.00 (five thousand) only; and

?????g. any other information necessary to identify the amount of any increasing or decreasing adjustments because of any adjustment event;

?It is provided that if a credit note does not contain the information specified in clause (f) of sub-section (1), it shall not be used in support of a claim for any decreasing adjustment. (Sub sec-2)

??9. Mushka 6.9: Turnover tax invoice

?A person who is only BIN registered for the turnover tax shall issue two copies of turn over tax invoice of the same serial number when VAT becomes payable on the supply of product or service.

?10. Mushka 6.10: Invoice data for purchase/ sales over BDT 200,000

When a BIN registered supplier supplies more than?BDT 200,000, He shall submit Mushak 6.10 at the time of submitting VAT Return (Mushak 9.1 or 9.2) or before the submitting VAT return after the transaction occurred.

Conclusion

VAT return is a very important issue for any vat BIN registered company. So, maintaining books and documents is necessary for calculating VAT and can also be used as evidence against submitted VAT returns.?

References

1.?VAT Act 2012 and VAT Rule 2016.

2. Finance Act 2021-2022.