Scribd
Upload
4 views34 pages

Chapter 09

The document provides a comprehensive overview of Value Added Tax (VAT), including its definition, characteristics, and the arguments for and against its implementation. It outlines the registration process, the roles of tax authorities, and the computation methods for VAT, along with the responsibilities of various taxpayers. Additionally, it discusses the advantages and disadvantages of VAT, as well as the legal framework surrounding its enforcement and compliance.

Uploaded by

ismamrashid510
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
4 views34 pages

Chapter 09

The document provides a comprehensive overview of Value Added Tax (VAT), including its definition, characteristics, and the arguments for and against its implementation. It outlines the registration process, the roles of tax authorities, and the computation methods for VAT, along with the responsibilities of various taxpayers. Additionally, it discusses the advantages and disadvantages of VAT, as well as the legal framework surrounding its enforcement and compliance.

Uploaded by

ismamrashid510
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

205: Theory & Practices of Taxation

Dr. Mohammed Jamal Uddin FCMA

Lesson-09: Value Added Tax (VAT) 01.01.26

Text: Nikhil et al.; Chap-22


BBA,3rd Semester,
2025
Contents

▪ Definition of VAT,
▪ Arguments for and against VAT
▪ VAT registration
▪ Books to be maintained
▪ Tax authorities & assessment procedure
▪ VAT agent
▪ Computation of VAT
Definition & Characteristics of VAT
Definition & Rates of VAT
▪ Definition of VAT:
▪ Value Added Tax (VAT) is an indirect tax imposed on value
added at different stages starting from production to
distribution process.
▪ It is collected against value addition through business
transactions involving sales of goods and rendering services.
▪ Value Addition = Output – Input
▪ VAT = Output tax – Input tax
▪ Statutory VAT rate: 0%, 2.0%, 4.5%, 5.0%, 7.5%, 10.0% 15.0%
Features of VAT
Advantages of VAT
Disadvantages of VAT

Value added to selling price is greater for the former. This is a real problem for
labor-intensive economies and industries.
❑ Certain industries where cash transactions dominate (e.g., small-scale services),
tend to have more VAT avoidance, VAT may be criticized for encouraging this.
Contribution of VAT
Scope of VAT
VAT Mechanism/ Measurement/ Computation
VAT Mechanism/ Measurement/ Computation
VAT Mechanism/ Measurement/ Computation
Methods of VAT Computation
Taxpayer under VAT system

▪ Taxpayer under VAT system:


Sl No Tax Payee Stage
1 Importer At import stage
2 Supplier At production or
manufacturing
stage
3 Service Provider At the time of
service delivery
4 Service Receiver In case of
service supplied
from outside of
Bangladesh
territory
5 Supplier and Service In other case
Receiver
VAT Registration & Turnover Tax Enlistment
VAT Registration & Turnover Tax Enlistment
VAT Registration & Turnover Tax Enlistment
VAT Registration & Turnover Tax Enlistment
Imposition of VAT
Imposition of VAT
Manner of VAT Collection Imports
Imposition & Collection of Turnover Tax and Accounting of VAT
Imposition & Collection of Turnover Tax and Accounting of VAT
VAT Authorities
VAT Authorities
VAT Authorities
VAT Authorities
Offence, Trial & Punishment related to VAT
Appeals & Revisions related to VAT
VAT Exercises
VAT Exercises
VAT Exercises
VAT Exercise
VAT Exercise

You might also like