--- oa_review_kit: v1 guide_slug: bangladesh-vat guide_version: bangladesh-vat@2026-04-13T17:52:51.594Z archetype: vat_gst --- # Review kit: Bangladesh VAT Thank you for reviewing this Guide. This kit is one file with three parts: how to use it, an interview prompt for your AI, and the Guide itself. ## How to use this kit (3 steps, about 15 minutes) 1. Open the AI you already use (ChatGPT, Claude, Gemini, anything that reads markdown) and paste in everything from "INTERVIEW PROMPT" below, including the Guide at the end. 2. Your AI interviews you like a colleague, one question at a time. Just talk: war stories, walk-throughs, the mistakes you catch. No writing required. 3. Your AI writes your answers up as a single markdown file. Hand it back at openaccountants.com/skills/bangladesh-vat/handback (also linked from the Guide page: "Hand back your file"). What you added is published under your name and credential. If your AI cannot produce the exact output format, hand back whatever you have: a revised Guide file, a worksheet, or plain notes. We take those too, and a person reviews them by hand. The format below is the one we can apply straight away. --- # INTERVIEW PROMPT (paste from here down into your AI) You are interviewing a practising accountant about how they actually do the work covered by the attached Guide ("Bangladesh VAT", slug `bangladesh-vat`). Interview them like a colleague doing a handover. Do not lecture. Ask ONE question at a time and wait for the answer. Chase war stories and specifics: what kind of client, which portal step, how big the penalty was. The rates, thresholds, and citations are our job; we refresh those from primary sources. Capture ONLY what is NOT derivable from law: - order of operations, and what a wrong order corrupts - what to ask a client before computing anything - what to assume when a fact is unknown, and how it gets flagged - the most-missed traps, with penalty size and who falls in - how the portal or filing channel actually behaves - what has to reconcile before anyone signs - when to refuse the work and hand it to a human specialist If the accountant corrects a rate, threshold, or deadline in the Guide along the way, record it in the FACT CORRECTIONS table, but do not steer the interview toward numbers. ## Questions to work through Ask these in order, one at a time. Skip any the accountant has already covered; follow up where a story has specifics worth pinning down. Each question is tagged with the method slot(s) it feeds. 1. [sequence] Walk me through the last VAT return you prepared, start to finish. What did you open first, and why that order? 2. [intake_questions] [evidence] A new client hands you nothing but a bank statement. What do you do before you'll classify a single line? 3. [pattern_library] Which bank-statement line gets misclassified most often in your experience? What does it look like and where should it actually go? 4. [scope_gate] Tell me about a client you refused or referred out. What about their VAT situation made you stop? 5. [trap] When you review a return someone else drafted, what mistake do you catch most often? 6. [conservative_default] When you can't tell if a sale is domestic or cross-border, what do you assume, and how do you mark it? 7. [cross_check] Before you sign, what has to reconcile with what, and how close is close enough? 8. [filing_mechanics] Walk me through filing on the actual portal. What surprises first-timers: the order of forms, what locks, what you can't undo? 9. [judgment_rule] Ever had a client on a simplified scheme where the "simplification" made things worse? How do you decide who belongs on it? 10. [trap] What's the real penalty story you tell clients, the one that actually happened? 11. [evidence] Which claims will you draft from a bank statement but never file without the underlying paper? 12. [unsettled_law] Anything in VAT right now you deliberately won't finalise because the rules are moving? ## Method slots (for tagging the write-up) - `scope_gate` (Scope gate and refusals): when to stop and send the client to a human - `sequence` (Order of operations): what order to do things in, and what a wrong order corrupts - `intake_questions` (Client intake questions): what to ask a client before computing - `evidence` (Documents and evidence): which documents to insist on, and what is draft-grade vs file-grade - `judgment_rule` (Judgment rules): how a practitioner actually picks when the law allows two routes - `conservative_default` (Conservative defaults): what to assume when a fact is unknowable at draft time - `trap` (Traps and most-missed items): the mistakes everyone makes, what they cost, and who falls in - `filing_mechanics` (Portal and filing mechanics): how submission actually works: channel, order, what locks - `cross_check` (Cross-checks before signing): what has to reconcile with what before delivery, and how close is close enough - `pattern_library` (Pattern library): how messy real-world data (bank lines, payout platforms) maps to tax categories - `edge_case` (Edge-case playbook): the client situations that change the method, not just the numbers - `unsettled_law` (Unsettled-law flags): what not to finalise right now, and why - `handback_protocol` (Hand-back protocol): what the finished working paper contains and who reviews it ## Output format: oa-handback v1 When the interview is done, write the answers up as ONE markdown file in exactly this shape. Fill in the reviewer's real name, credential, and email (ask for them at the end if they have not come up). Every method block gets a `### [method:]` heading where `` is one of the 13 slot ids above. Keep `guide_slug` and `guide_version` exactly as given. Omit any section the interview produced nothing for, but keep the headings that remain exactly as shown. The `fact_key` column may be left blank when unknown. ```markdown --- oa_handback: v1 guide_slug: bangladesh-vat guide_version: bangladesh-vat@2026-04-13T17:52:51.594Z reviewer_name: reviewer_credential: # free text: CPA, EA, ACCA, Steuerberater... reviewer_email: verdict: --- ## METHOD ### [method:filing_mechanics] ### [method:intake_questions] - - ... ## FACT CORRECTIONS | fact_key | current | correct | source | |---|---|---|---| | | | | | ## FLAGS - [unsettled] - [refer] ## NOTES ``` If for any reason you cannot produce this exact format, output the accountant's corrections and methods as clear plain notes instead. The hand-back page accepts plain notes and revised Guide files too; this format is an optimization, never a gate. --- # THE GUIDE UNDER REVIEW --- name: bangladesh-vat description: Use this skill whenever asked to prepare, review, or classify transactions for a Bangladesh VAT return (Mushak-9.1) or turnover tax return for any client. Trigger on phrases like "prepare VAT return", "Bangladesh VAT", "Mushak", "BIN registration", "NBR filing", or any request involving Bangladesh VAT. Also trigger when classifying transactions for VAT purposes from bank statements, invoices, or other source data. This skill covers standard VAT-registered (Article 10 equivalent) and turnover tax filers. Complex multi-establishment structures, bond/export processing zones, and supplementary duty computations are in the refusal catalogue. MUST be loaded alongside vat-workflow-base v0.1 or later (for workflow architecture). ALWAYS read this skill before touching any Bangladesh VAT work. jurisdiction: BD domain: vat-gst tax_year: 2025 --- # bangladesh-vat ## Bangladesh VAT Return Skill (Mushak-9.1) v2.0 ## Section 1 — Quick reference Read this whole section before classifying anything. The workflow runbook is in vat-workflow-base Section 1 — follow that runbook with this skill providing the country-specific content. **Quick reference table** | Field | Value | | --- | --- | | Country | Bangladesh (People's Republic of Bangladesh) | | Standard rate | 15% | | Reduced rates | 5%, 7.5%, 10% (specified goods/services via SRO) | | Turnover tax | 4% (BDT 50 lakh–3 crore turnover); 3% (BDT 30–50 lakh) | | Zero rate | 0% (exports, deemed exports, supplies to diplomats) | | Return form | Mushak-9.1 (monthly VAT return); Turnover Tax return (quarterly) | | Filing portal | https://vat.gov.bd (Mushak Online Portal) | | Authority | National Board of Revenue (NBR) | | Currency | BDT (Bangladeshi Taka) | | Filing frequencies | Monthly (VAT registered); Quarterly (turnover tax) | | Deadline | Within 15 days after end of period | | Companion skill (Tier 1, workflow) | vat-workflow-base v0.1 or later — MUST be loaded | | Contributor | Open Accounting Skills Registry | | Validated by | Pending local practitioner validation | | Validation date | Pending | **Key Mushak-9.1 sections** | Part | Meaning | | --- | --- | | Part 1 | Entity information (BIN, name, period) | | Part 2 | Output tax on local sales (standard + reduced rates) | | Part 3 | Output tax on exports (zero-rated) | | Part 4 | Exempt supplies | | Part 5 | Total output tax (derived: sum of Part 2) | | Part 6 | Input tax on local purchases (from Mushak-6.1) | | Part 7 | Input tax on imports (from Bill of Entry) | | Part 8 | Total input tax credit (derived: Part 6 + Part 7) | | Part 9 | Net tax payable or credit carried forward (Part 5 minus Part 8) | | Part 10 | Supplementary Duty (if applicable) | | Part 11 | Interest / penalty (if late) | | Part 12 | Total payable (derived: Parts 9 + 10 + 11) | **Conservative defaults — Bangladesh-specific values** | Ambiguity | Default | | --- | --- | | Unknown rate on a sale | 15% | | Unknown VAT status of a purchase | Not deductible | | Unknown counterparty location | Domestic Bangladesh | | Unknown registration type | VAT registered (standard) | | Unknown business-use proportion | 0% recovery | | Unknown blocked-input status | Blocked | | Unknown whether transaction is in scope | In scope | **Red flag thresholds** | Threshold | Value | | --- | --- | | HIGH single-transaction size | BDT 500,000 | | HIGH tax-delta on a single conservative default | BDT 30,000 | | MEDIUM counterparty concentration | >40% of output OR input | | MEDIUM conservative-default count | >4 across the return | | LOW absolute net VAT position | BDT 1,000,000 | ## Section 2 — Required inputs and refusal catalogue ### Required inputs **Minimum viable** — bank statement for the month in CSV, PDF, or pasted text. Must cover the full period. Acceptable from any Bangladeshi bank: Dutch-Bangla Bank, BRAC Bank, Eastern Bank, City Bank, Standard Chartered BD, HSBC BD, Islami Bank, or any other. **Recommended** — sales invoices (Mushak-11) for the period, purchase invoices with supplier BIN, the client's BIN in writing (13 digits). **Ideal** — complete Mushak-6.1 (purchase register), Mushak-6.2 (sales register), prior period Mushak-9.1, reconciliation of excess credit brought forward. **Refusal policy if minimum is missing — SOFT WARN.** If no bank statement is available at all, hard stop. If bank statement only without invoices, proceed but record in the reviewer brief: "This Mushak-9.1 was produced from bank statement alone. The reviewer must verify that input VAT claims are supported by compliant Mushak-11 invoices bearing supplier BIN and that all classifications match supporting documents." ### Bangladesh-specific refusal catalogue - **R-BD-1 — Turnover tax client attempting to claim input VAT** — Turnover tax payers pay a flat 3%/4% on turnover and cannot recover input VAT. This skill can prepare the turnover tax return but cannot calculate input VAT recovery for a turnover tax client. (Trigger: client is turnover tax registered (annual turnover BDT 30 lakh to BDT 3 crore).) - **R-BD-2 — Export Processing Zone (EPZ) entity** — EPZ/SEZ entities have special VAT rules outside the standard Mushak-9.1 framework. Please escalate to a qualified chartered accountant familiar with EPZ obligations. (Trigger: client operates in an EPZ or Special Economic Zone.) - **R-BD-3 — Multi-establishment with separate BINs** — Each BIN files a separate Mushak-9.1 with inter-establishment transfers on Mushak-6.4. This requires consolidation analysis beyond this skill. Please use a qualified practitioner. (Trigger: client has multiple business units each with a separate BIN.) - **R-BD-4 — Supplementary Duty computation** — Supplementary Duty rates vary widely (7.5%–500%) and SD is calculated before VAT. This requires specialist product-level analysis. Please escalate to a qualified chartered accountant. (Trigger: client manufactures or imports goods subject to Supplementary Duty (tobacco, alcohol, vehicles, SIM cards).) - **R-BD-5 — Withholding VAT agent obligations** — VDS withholding obligations require tracking of Mushak-6.10 certificates and deposit schedules. Out of scope for standard return preparation. Please use a qualified practitioner. (Trigger: client is a designated VDS withholding agent (government entity, bank, NGO, listed company).) ## Section 3 — Supplier pattern library (the lookup table) This is the deterministic pre-classifier. When a transaction's counterparty matches a pattern in this table, apply the treatment directly. Do not second-guess. **How to read this table.** Match by case-insensitive substring on the counterparty name as it appears in the bank statement. If multiple patterns match, use the most specific. If none match, fall through to Tier 1 rules in Section 5. ### 3.1 Bangladeshi banks (fees exempt — exclude) **3.1 Bangladeshi banks table** | Pattern | Treatment | Notes | | --- | --- | --- | | DUTCH-BANGLA, DUTCH BANGLA, DBBL | EXCLUDE for bank charges/fees | Financial service, exempt | | BRAC BANK, BRAC BNK | EXCLUDE for bank charges/fees | Same | | EASTERN BANK, EBL | EXCLUDE for bank charges/fees | Same | | CITY BANK, ISLAMI BANK, AB BANK | EXCLUDE for bank charges/fees | Same | | STANDARD CHARTERED BD, HSBC BD | EXCLUDE for bank charges/fees | Same | | UCBL, PRIME BANK, MUTUAL TRUST | EXCLUDE for bank charges/fees | Same | | INTEREST, MUNAFA, PROFIT | EXCLUDE | Interest income/expense, out of scope | | LOAN, REPAYMENT | EXCLUDE | Loan principal movement, out of scope | ### 3.2 Government, regulators, and statutory bodies (exclude entirely) **3.2 Government table** | Pattern | Treatment | Notes | | --- | --- | --- | | NBR, NATIONAL BOARD OF REVENUE | EXCLUDE | Tax payment, not a supply | | VAT DEPARTMENT, MUSHAK | EXCLUDE | VAT payment | | CUSTOMS, SHULKO | EXCLUDE | Customs duty (but import VAT on Bill of Entry is claimable) | | BIDA, BOI, RJSC | EXCLUDE | Regulatory/licence fees | | RAJUK, CDA, KDA | EXCLUDE | Development authority fees | | INCOME TAX, TAX DEDUCTED | EXCLUDE | Income tax payment | ### 3.3 Utilities **3.3 Utilities table** | Pattern | Treatment | Return section | Notes | | --- | --- | --- | --- | | DESCO, DPDC, BPDB, NESCO, BREB | Domestic 15% | Part 6 | Electricity — overhead | | TITAS GAS, BAKHRABAD GAS, JALALABAD GAS | Domestic 15% | Part 6 | Gas utility | | WASA, DHAKA WASA, CHITTAGONG WASA | Domestic 15% | Part 6 | Water supply | | GRAMEENPHONE, GP, ROBI, BANGLALINK, TELETALK | Domestic 15% | Part 6 | Telecoms — overhead (note: 15% SD also applies to mobile services) | ### 3.4 Insurance (exempt — exclude) **3.4 Insurance table** | Pattern | Treatment | Notes | | --- | --- | --- | | SADHARAN BIMA, JIBAN BIMA | EXCLUDE | Government insurance, exempt | | GREEN DELTA, PRAGATI, PIONEER | EXCLUDE | Insurance premium, exempt | | METLIFE BD, GUARDIAN LIFE | EXCLUDE | Same | ### 3.5 Digital payments and mobile financial services **3.5 Digital payments table** | Pattern | Treatment | Notes | | --- | --- | --- | | BKASH, B-KASH | EXCLUDE for transaction fees | Financial service, exempt | | NAGAD | EXCLUDE for transaction fees | Same | | ROCKET, DBBL MOBILE | EXCLUDE for transaction fees | Same | | UPAY, SURE CASH | EXCLUDE for transaction fees | Same | ### 3.6 Payroll and social security (exclude entirely) **3.6 Payroll table** | Pattern | Treatment | Notes | | --- | --- | --- | | SALARY, BETON, WAGES | EXCLUDE | Wages — outside VAT scope | | PROVIDENT FUND, PF | EXCLUDE | Employee benefit, out of scope | | GRATUITY | EXCLUDE | Employee benefit | ### 3.7 SaaS and international digital services (reverse charge) **3.7 SaaS table** | Pattern | Billing entity | Treatment | Notes | | --- | --- | --- | --- | | GOOGLE, GOOGLE ADS | Google (US/IE entity) | Self-assess 15% | Non-resident digital service | | MICROSOFT, AZURE, OFFICE 365 | Microsoft (US/IE) | Self-assess 15% | Same | | META, FACEBOOK ADS | Meta (US/IE) | Self-assess 15% | Same | | AMAZON AWS, AWS | Amazon (US/LU) | Self-assess 15% | Same | | ZOOM, SLACK, DROPBOX | US entities | Self-assess 15% | Same | | CANVA, FIGMA, NOTION | Non-resident | Self-assess 15% | Same | ### 3.8 Professional services (Bangladesh) **3.8 Professional services table** | Pattern | Treatment | Return section | Notes | | --- | --- | --- | --- | | CA FIRM, AUDIT, CHARTERED ACCOUNTANT | Domestic 15% | Part 6 | Deductible if business purpose | | ADVOCATE, LAWYER, BARRISTER | Domestic 15% | Part 6 | Legal services | | CONSULTANT, ENGINEERING | Domestic 15% | Part 6 | Professional overhead | ### 3.9 Property and rent **3.9 Property and rent table** | Pattern | Treatment | Notes | | --- | --- | --- | | RENT, BHARA, OFFICE RENT | Domestic 15% if commercial with VAT invoice | Part 6 | | HOUSE RENT, RESIDENTIAL | EXCLUDE | Residential lease, exempt | ### 3.10 Internal transfers and exclusions **3.10 Internal transfers table** | Pattern | Treatment | Notes | | --- | --- | --- | | OWN TRANSFER, INTERNAL, ACCOUNT TRANSFER | EXCLUDE | Internal movement | | DIVIDEND | EXCLUDE | Out of scope | | CASH WITHDRAWAL, ATM | TIER 2 — ask | Default exclude; ask what cash was spent on | | DIRECTOR FEE, PROPRIETOR DRAWING | EXCLUDE | Out of scope | ## Section 4 — Worked examples These are six fully worked classifications drawn from a hypothetical bank statement of a Dhaka-based self-employed IT consultant. ### Example 1 — Standard domestic sale at 15% **Example 1 output table** | Date | Counterparty | Gross | Net | VAT | Rate | Return section | Default? | Excluded? | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 05.04.2026 | ABC TECHNOLOGIES LTD | +115,000 | +100,000 | 15,000 | 15% | Part 2 (output) | N | — | **Input line:** `05.04.2026 ; ABC TECHNOLOGIES LTD ; CREDIT ; Invoice BD-2026-041 IT consultancy ; BDT 115,000` **Reasoning:** Domestic sale of IT consulting services to a BDT-paying local company. Standard 15% applies. The gross amount includes VAT. Net = BDT 100,000, VAT = BDT 15,000. Report in Mushak-9.1 Part 2. Mushak-11 tax invoice must be issued. ### Example 2 — Local purchase with input tax credit **Example 2 output table** | Date | Counterparty | Gross | Net | VAT | Rate | Return section | Default? | Excluded? | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 10.04.2026 | COMPUTER SOURCE BD | -23,000 | -20,000 | 3,000 | 15% | Part 6 (input) | N | — | **Input line:** `10.04.2026 ; COMPUTER SOURCE BD ; DEBIT ; Office supplies ; BDT -23,000` **Reasoning:** Purchase from a local VAT-registered supplier. Assuming valid Mushak-11 held with supplier BIN. Net = BDT 20,000, VAT = BDT 3,000 at 15%. Input VAT claimable in Part 6. ### Example 3 — Export, zero-rated **Example 3 output table** | Date | Counterparty | Gross | Net | VAT | Rate | Return section | Default? | Excluded? | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 15.04.2026 | STUDIO KREBS GMBH | +350,000 | +350,000 | 0 | 0% | Part 3 (export) | N | — | **Input line:** `15.04.2026 ; STUDIO KREBS GMBH ; CREDIT ; Invoice BD-EXP-018 Software development ; BDT 350,000` **Reasoning:** Export of IT services. Zero-rated under VAT & SD Act 2012 Section 24. Report in Mushak-9.1 Part 3 at 0%. Input VAT on related purchases is fully recoverable. Bank realization certificate required within 6 months. ### Example 4 — Non-resident digital service (reverse charge) **Example 4 output table** | Date | Counterparty | Gross | Net | VAT | Rate | Return section | Default? | Excluded? | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 18.04.2026 | GOOGLE IRELAND LIMITED | -2,800 | -2,800 | 420 | 15% | Part 2 (output) + Part 6 (input) | N | — | **Input line:** `18.04.2026 ; GOOGLE IRELAND LIMITED ; DEBIT ; Google Workspace April ; BDT -2,800` **Reasoning:** Service from non-resident. No VAT on invoice. Client must self-assess VAT at 15% under reverse charge (Section 18(3)). Self-assessed output = BDT 420. If used for taxable supplies, input credit of BDT 420 also claimable. Net effect zero for fully taxable client. ### Example 5 — Blocked input: passenger vehicle **Example 5 output table** | Date | Counterparty | Gross | Net | VAT | Rate | Return section | Default? | Excluded? | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 22.04.2026 | TOYOTA BANGLADESH | -85,000 | -85,000 | 0 | — | — | Y | "Vehicle: blocked" | **Input line:** `22.04.2026 ; TOYOTA BANGLADESH ; DEBIT ; Lease payment Corolla ; BDT -85,000` **Reasoning:** Passenger vehicle lease. Input VAT blocked under VAT & SD Act 2012 Section 49 — personal consumption / passenger vehicle unless transport business. IT consultant does not qualify. Full block, zero recovery. ### Example 6 — Bank charges, excluded **Example 6 output table** | Date | Counterparty | Gross | Net | VAT | Rate | Return section | Default? | Excluded? | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 30.04.2026 | DUTCH-BANGLA BANK | -500 | — | — | — | — | N | "Exempt financial service" | **Input line:** `30.04.2026 ; DUTCH-BANGLA BANK ; DEBIT ; Monthly maintenance fee ; BDT -500` **Reasoning:** Bank charges are exempt financial services. No VAT. Exclude from VAT return entirely. ## Section 5 — Tier 1 classification rules (compressed) ### 5.1 Standard rate 15% (VAT & SD Act 2012, Section 15) - **Standard rate application** — Default rate for any taxable supply unless a reduced rate, zero rate, or exemption applies. Sales go to Mushak-9.1 Part 2. Purchases go to Part 6. _(VAT & SD Act 2012, Section 15)_ ### 5.2 Reduced rates (Third Schedule, various SROs) - **Reduced rates application** — 5%, 7.5%, or 10% on specified goods/services as gazetted via Statutory Regulatory Orders. Each reduced rate has its own line in Part 2. Check current SRO schedule before classifying. _(Third Schedule, various SROs)_ ### 5.3 Zero rate (Section 24-25) - **Zero rate application** — Exports of goods (with customs documentation), deemed exports (EPZ supplies), supplies to diplomats, international transport. Report in Part 3. Input VAT on related purchases fully recoverable. _(Section 24-25)_ ### 5.4 Exempt supplies (First Schedule) - **Exempt supplies** — Agricultural products, certain food items, education, health services, land transport, financial services. Report in Part 4. No output VAT, no input VAT recovery on related costs. _(First Schedule)_ ### 5.5 Input tax credit — eligibility (Section 45-52) - **Input tax credit eligibility** — Purchase must be used for making taxable supplies. Valid Mushak-11 with supplier BIN required. Claim within 3 return periods from invoice date. _(Section 45-52)_ ### 5.6 Input tax credit — apportionment - **Apportionment formula** — creditable input = total input x (taxable supplies / total supplies) (If business makes both taxable and exempt supplies. Annual adjustment required. Flag for reviewer.) ### 5.7 Blocked input VAT (Section 49) - **Blocked input VAT categories** — Zero VAT recovery regardless of other rules: personal consumption, passenger vehicles (unless transport business), entertainment (unless documented promotion), purchases without valid Mushak-11, purchases from unregistered suppliers, goods lost/stolen/destroyed (unless insured), free samples (unless documented promotional). Check blocked status FIRST before applying any recovery. _(Section 49)_ ### 5.8 Imports - **Import VAT** — VAT at 15% on (assessable value + customs duty). Paid at customs. Input credit claimable in Part 7 if goods used for taxable supplies. ### 5.9 Reverse charge on imported services (Section 18(3)) - **Reverse charge on imported services** — Non-resident service provider with no BIN: client self-assesses 15% output VAT. Input credit claimable if used for taxable supplies. Net effect zero for fully taxable client. _(Section 18(3))_ ### 5.10 Capital goods - **Capital goods treatment** — Full credit in period of acquisition if used entirely for taxable supplies. If mixed use (taxable and exempt), apportionment applies — flag for reviewer. ### 5.11 Credit notes (Section 57) - **Credit notes treatment** — Supplier reduces output VAT in period of credit note. Buyer reverses input VAT. Both update Mushak-6.1/6.2. Register in Mushak-6.2.1. _(Section 57)_ ### 5.12 Time of supply (Section 14) - **Time of supply rule** — VAT chargeable at the earlier of: invoice date, payment receipt, or delivery. Advance payments trigger VAT at receipt. _(Section 14)_ ### 5.13 Turnover tax (simplified) - **Turnover tax rule** — Turnover tax payers file quarterly. Rate: 4% (BDT 50 lakh–3 crore) or 3% (BDT 30–50 lakh). No input credit. No reverse charge. Report total turnover and flat-rate tax only. ## Section 6 — Tier 2 catalogue (compressed) ### 6.1 Fuel and vehicle costs - **Fuel and vehicle costs guidance** — Pattern: petrol station, CNG, Padma Oil, Jamuna Oil. Why insufficient: vehicle type unknown. If passenger car, blocked. If commercial vehicle for business, deductible. Default: 0% recovery. Question: "Is this for a commercial vehicle used exclusively for business?" ### 6.2 Entertainment and meals - **Entertainment and meals guidance** — Pattern: restaurant, hotel dining, catering. Why insufficient: entertainment blocked unless documented business promotion. Default: block. Question: "Was this documented promotional entertainment with supporting records?" ### 6.3 Ambiguous SaaS billing entities - **Ambiguous SaaS billing guidance** — Pattern: Google, Microsoft, Meta, Amazon where legal entity not visible. Why insufficient: same brand can bill from various entities. Default: self-assess 15% reverse charge. Question: "Could you check the invoice for the legal entity name and country?" ### 6.4 Round-number incoming transfers - **Round-number incoming transfers guidance** — Pattern: large round credit from owner-matching name. Default: exclude as proprietor injection. Question: "Is this a customer payment, your own capital injection, or a loan?" ### 6.5 Incoming transfers from individuals - **Incoming transfers from individuals guidance** — Pattern: incoming from private-looking counterparties. Default: domestic sale at 15% (Part 2). Question: "Was this a sale? If so, what goods/services?" ### 6.6 Cash withdrawals - **Cash withdrawals guidance** — Pattern: ATM, cash withdrawal. Default: exclude as proprietor drawing. Question: "What was the cash used for?" ### 6.7 Mixed-use phone and internet - **Mixed-use phone and internet guidance** — Pattern: Grameenphone, Robi, Banglalink personal lines. Default: 0% recovery if mixed use. Question: "Is this a dedicated business line or personal/mixed?" ### 6.8 Rent payments - **Rent payments guidance** — Pattern: monthly rent to landlord. Default: no input credit (no invoice assumed). Question: "Does the landlord issue a Mushak-11 with their BIN?" ### 6.9 Outgoing transfers to individuals - **Outgoing transfers to individuals guidance** — Pattern: outgoing to private names. Default: exclude as drawings/wages. Question: "Was this a contractor payment with invoice, wages, or personal transfer?" ### 6.10 Import-related payments - **Import-related payments guidance** — Pattern: LC, shipping, freight forwarder. Why insufficient: need Bill of Entry to determine VAT paid at customs. Default: exclude until Bill of Entry provided. Question: "Please provide the customs Bill of Entry showing VAT paid." ## Section 7 — Excel working paper template (Bangladesh-specific) The base specification is in vat-workflow-base Section 3. This section provides the Bangladesh-specific overlay. ### Sheet "Transactions" Columns A-L per the base. Column H ("Return section") accepts: Part 2, Part 3, Part 4, Part 6, Part 7, or blank for excluded transactions. For reverse-charge transactions, enter "Part 2 + Part 6" in column H. ### Sheet "Return Summary" **Return Summary formula table** | Part 2 | Output tax on local sales | =SUMIFS(Transactions!F:F, Transactions!H:H, "Part 2") | | Part 3 | Export sales (zero-rated) | =SUMIFS(Transactions!E:E, Transactions!H:H, "Part 3") | | Part 4 | Exempt supplies | =SUMIFS(Transactions!E:E, Transactions!H:H, "Part 4") | | Part 5 | Total output tax | =Return_Summary!C[Part2_row] | | Part 6 | Input tax local purchases | =SUMIFS(Transactions!F:F, Transactions!H:H, "Part 6") | | Part 7 | Input tax imports | =SUMIFS(Transactions!F:F, Transactions!H:H, "Part 7") | | Part 8 | Total input tax credit | =C[Part6_row]+C[Part7_row] | | Part 9 | Net tax payable | =C[Part5_row]-C[Part8_row] | | Part 12 | Total payable | =MAX(C[Part9_row],0) | ### Sheet "Return Form" Final Mushak-9.1-ready figures. If Part 8 > Part 5, excess credit carried forward (no refund claim via this skill). ## Section 8 — Bank statement reading guide Follow the universal exclusion rules in vat-workflow-base Step 6, plus these Bangladesh-specific patterns. **CSV format conventions.** Dutch-Bangla and BRAC Bank exports typically use comma delimiters with DD/MM/YYYY dates. Common columns: Date, Description, Debit, Credit, Balance. **Bengali/Bangla language variants.** Some descriptions may appear in Bangla script. Treat transliterated equivalents the same as English. **Internal transfers and exclusions.** Own-account transfers between client's DBBL, BRAC, bKash accounts. Always exclude. **Proprietor draws.** Self-employed sole proprietors cannot pay themselves wages. Any transfer to personal account is a drawing. Exclude. **bKash/Nagad transactions.** Mobile financial service transactions appear as "BKASH", "NAGAD". Transaction fees are exempt. The underlying payment may be a sale or purchase — classify based on counterparty, not the payment method. **Foreign currency transactions.** Convert to BDT at the transaction date rate. Use Bangladesh Bank reference rate. ## Section 9 — Onboarding fallback (only when inference fails) ### 9.1 Entity type Inference: sole trader names match account holder; company names end in "Ltd", "Limited", "Pvt Ltd". Fallback: "Are you a sole proprietor, partnership, or company?" ### 9.2 Registration type Inference: if asking for Mushak-9.1, VAT registered. If turnover below BDT 3 crore, may be turnover tax. Fallback: "Are you VAT registered (BIN holder, 15%) or turnover tax (3-4%)?" ### 9.3 BIN Inference: 13-digit BIN may appear in payment descriptions. Fallback: "What is your 13-digit BIN?" ### 9.4 Filing period Inference: first and last transaction dates. Monthly for VAT registered. Fallback: "Which month does this cover?" ### 9.5 Industry Inference: counterparty mix, sales descriptions. Fallback: "What does the business do?" ### 9.6 Exempt supplies Inference: presence of medical/educational/financial income. Fallback: "Do you make any VAT-exempt sales?" If yes and significant, apportionment required. ### 9.7 Exports Inference: foreign currency incoming, foreign counterparties. Fallback: "Do you export goods or services?" ### 9.8 Credit brought forward Not inferable. Always ask: "Do you have excess credit from the prior period?" ## Section 10 — Reference material ### Sources 1. Value Added Tax and Supplementary Duty Act 2012 — Sections 2, 5, 14, 15, 18, 24, 25, 45-52, 57, 107, 109-130 2. VAT & SD Rules 2016 — Rules 40-47, Mushak form series 3. NBR Statutory Regulatory Orders (SROs) for reduced rates and exemptions 4. NBR Mushak Online Portal — https://vat.gov.bd ### Known gaps 1. Supplier pattern library covers major Bangladeshi banks and utilities but not every local vendor. Add patterns as they emerge. 2. Supplementary Duty computation is refused (R-BD-4) — a future version should add SD for common categories. 3. SRO-based reduced rates change frequently. Verify current SRO schedule before each filing period. 4. Multi-establishment (separate BIN) consolidation is refused (R-BD-3). 5. Worked examples are for a hypothetical IT consultant in Dhaka. Sector-specific examples (garments, pharmaceuticals) should be added in v2.1. ### Change log - v2.0 (April 2026): Full rewrite to Malta v2.0 ten-section structure. Supplier pattern library added (Section 3). Worked examples added (Section 4). Tier 1 rules compressed (Section 5). Tier 2 catalogue added (Section 6). Excel template specification added (Section 7). Bank statement reading guide added (Section 8). Onboarding moved to fallback role (Section 9). - v1.1: Previous monolithic version with full Mushak form mappings and test suite. ### Self-check 1. Quick reference at top with return sections and conservative defaults: yes (Section 1). 2. Supplier library as literal lookup tables: yes (Section 3, 10 sub-tables). 3. Worked examples: yes (Section 4, 6 examples). 4. Tier 1 rules compressed: yes (Section 5, 13 rules). 5. Tier 2 catalogue compressed: yes (Section 6, 10 items). 6. Excel template specification: yes (Section 7). 7. Onboarding as fallback: yes (Section 9, 8 items). 8. All 5 Bangladesh-specific refusals present: yes (Section 2). 9. Reference material at bottom: yes (Section 10). 10. Blocked input VAT explicit: yes (Section 5.7 + Example 5). ## Disclaimer This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon. The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com).