Guide to VAT Deduction at Source Rules & Rates FY 2022-23

Guidelines for VAT Deduction at Source (VDS)
and
VAT & SD Rate for the FY 2022-2023 in Comparison with the FY 2021-2022
(As amended on 05 July 2022)
Compiled by:
Masum Gazi
E-mail: masumgazi613@gmail.com
Linkedln: https://www.linkedin.com/in/taxprofessionalbd/
In association with:
Mahmudul Hasan
Linkedln: https://www.linkedin.com/in/mahmudulhasan2107/
Compiled by: Masum Gazi In association with: Mahmudul Hasan Page 1 of30

Table of Contents
SI. No. Particulars Page No.
1 Withholding entity 3
2 Withholding of VAT 3
3 Applicability ofwithholding VAT in some other cases 3
4 VAT deduction at source from procurement provider 4
5 Non-applicability ofwithholding VAT 4
6 Requirements to be followed by withholding VAT entity 5
7 Treasury deposit code 6
8 Requirements to be followed by supplier 6
9 Punishment for failure to deduct VAT at source 7
10 Others 7
11 VAT rate of services for the FY 2022-2023 in comparison with the FY 2021-2022 (Table-i) 8-16
12 VAT rate of goods as per 3rd schedule for the FY 2022-2023 in comparison with the FY 2021-2022 (Table-2) 17-26
13 Goods subject to Supplementary Duty (SD) at supply stage (Table-3) 27-28
14 Services subject to Supplementary Duty (SD) at supply stage (Table-4) 29
15 References 30
16 Declaration 30

1. Withholding entity
As per section 2(21) of VAT & SD Act, 2012 and rule 2(1)(b) ofSRO No. 240-Law/2021/163-Mushak dated 29 June 2021, the following persons
shall be treated as 'Withholding Entity":
• Any government entity or any of its ministry, division or attached department, a semi-government or autonomous body, state-owned entity,
local authority, council or similar nature of organization;
• Non-government organization approved by the NGO Affairs Bureau or the Directorate General of Social Welfare;
• Any bank, insurance company or similar nature of financial institution;
• Any educational institution of secondary or above level; and
• Any limited company.
2. Withholding of VAT
In case ofgoods:
• No VAT shall be deducted at source, if manufacturer supply goods mentioning 15% VAT or reduced (truncated) rate ofVAT or specific rate of
VAT (where applicable) in Mushak-6.3. [SRO No. 179/2022 dated 01 June 2022]
In case ofservice:
• In case of services mentioned below, serial number 11 (Table-I), where "Yes" is mentioned in column 6, VAT shall be deducted at source
mandatorilywhether Mushak-6.3 is received or not. On the other hand, where "No" is mentioned, VA Tshall not be deducted upon receiving
valid Mushak-6.3; without receiving valid Mushak-6.3, VAT shall be deducted at source at the applicable rate.
3. Applicability of withholding VAT in some other cases
• Service imported from outside of Bangladesh by an unregistered person; VAT shall be collected at source by the bank @ 15% at the time of
making payment for such imported service;
• Service imported from outside of Bangladesh by a registered person; the service importer shall deposit VAT @ 15% on the applicable amount.
Upon receiving the copy of treasury challan, the bank shall remit the money without collecting VAT at source; otherwise, the bank shall collect
an appropriate amount ofVAT or shortfall amount of VAT and deposit the collected VAT amount to the Government Treasury;

• When issuing and renewing licenses or any other services provided by the Government, Semi-Government, Autonomous Body, and Local
Authority, VAT shall be collected at source at the rate of 15% on the total received amount. Further, in case of providing license, registration,
conditions mentioned in a permit for revenue sharing, royalty, commission, charge, fee or any other way, VAT shall be collected at the rate of
15% on total received amount;
• "Space and Structure Rent Receiver" shall pay VAT at the rate of 15% on the rental amount.
4. VAT deducted at source from procurement provider
• "Procurement Provider" means a supply of taxable goods or services (except services having specific definition) or both through a quotation,
tender, work order or any other way to any withholding entity by any person, organization or agency except manufacturer;
• Amanufacturer and a service provider (having separate service code) shall be excluded from the definition of procurement provider;
• Goods or services exempted from VAT as per 1st Schedule shall be excluded from the definition of procurement provider and VAT;
• Goods or services exempted by any order supplied by a procurement provider shall be a VATable supply, and VAT shall be deducted
accordingly unless exemption is mentioned separately for the procurement provider.
5. Non-applicability of withholding VAT
VAT shall not be required to deduct at source for the following cases:
• No VAT shall be deducted at source, if manufacturer supply goods mentioning 15% VAT or reduced (truncated) rate of VAT or specific rate of
VAT (where applicable) in Mushak-6.3;
• Service provided with Mushak-6.3 except for services for which mandatory deduction is applicable that are mentioned below serial number
11 (Table-I), where "Yes" is mentioned in column 6;
• Payment for fuel, gas, water (WASA), electricity, telephone and mobile bill;
• Supply ofgoods or services or both mentioned in 1" schedule of the VAT and SD Act, 2012;
• Zero-rated supply (export and deemed export) mentioned in section 21 of the VAT and SD Act, 2012;
• Providing Mushak-6.3 attested by concerned revenue officer by Advertising Agency (S007.00) & Television and Online Broadcasting Media
Program Supplier (S043.00);
• Providing Mushak-6.3 attested by concerned revenue officer where VAT is @ 15% already paid by the manufacturer of furniture; and
• Mushak-6.3 issued from Electronic Fiscal Device (EFD)/Sales Data Controller (SDC) mentioning the name and VAT registration number of
service receiver.

6. Requirements to be followed by withholding VAT entity
• Without Mushak-6.3, the withholding entity shall not take any service or make any payment to a supplier;
• Goods/service receiver shall be liable for payment ofapplicable VAT for receiving supply from an unregistered or enlisted person;
• Goods/service receiver shall deposit the deducted/collected amount to the Government treasury within 07 days following the month when
the payment has been made to the supplier;
• The registered withholding entity will show the deducted amount as an increasing adjustment in the VAT return. The deposited withholding
VAT amount would be adjusted with the net VAT payable; if there is any shortfall, it would be deposited accordingly;
• The registered and non-registered withholding entity shall issue 03 (three) copies of certificate of VAT deduction at source (Mushak-6.6)
within 03 days from the date of depositing to the government treasury. Both original copy of Mushak-6.6 and treasury challan shall be
submitted to the concerned VAT circle office, 2nd copy shall be provided to the service provider, and 3'" copy shall be kept for 5 years by the
issuer;
• Withholding entities, whose transactions are settled by Government accounts officer, deduction and deposit also shall be done by concerned
accounts officer;
• The accounts officer shall issue 03 (three) copies ofcertificate ofVAT deduction at source (Mushak-6.6) within 3 days from the date ofpayment.
Both original copy of Mushak-6.6 and treasury challan shall be submitted to the concerned VAT circle office, 2nd copy shall be provided to the
service provider and 3,d copy shall be kept for 5 years by the issuer.

7. Treasury deposit code
Deducted VAT shall be deposited to Government Treasury in the following Deposit Code:
SI. No. Commissionerate Deposit Code (VAT)
1 Dhaka (East) 1/1133/0030/0311
2 Dhaka (West) 1/1133/0035/0311
3 Dhaka (North) 1/1133/0015/0311
4 Dhaka (South) 1/1133/0010/0311
5 Chattogram 1/1133/0025/0311
6 Cumilla 1/1133/0040/0311
7 Sylhet 1/1133/0018/0311
8 Rajshahi 1/1133/0020/0311
9 Rangpur 1/1133/0045/0311
10 Jashore 1/1133/0005/0311
11 Khulna 1/1133/0001/0311
12 Large Tax Payers Unit (LTU) 1/1133/0006/0311
8. Requirements to be followed by supplier
• Supplier shall issue Mushak-6.3 at the time of supply ofany goods or service;
• Supplier shall present value of delivered goods or services and VAT amount in monthly VAT return (Mushak-9.1);
• Supplier will make a decreasing adjustment for deducted amount VAT in monthly VAT return (Mushak-9.1) upon receiving Mushak-6.6 and
condition that such deducted amount was previously shown as output tax.;
• Supplier is eligible for decreasing adjustment in that tax period on which Mushak-6.6 is received or the next 03 (three) tax periods (total 04
tax periods).

9. Punishment for failure to deduct VAT at source
• Failure to deduct VAT at source and depositing the same to the government treasury, both withholding entity and supplier shall be individually
and jointly liable;
• Defaulter shall pay the deductible amount with half-yearly interest @ 2% and such person may be penalized personally amounting up to BOT
25,000.
10. Others
• VAT deducted by branch or sales center under central registration unit shall be deposited to Government treasury by their Centrally Registered
Unit;
• Suppose there are multiple elements in a single supply and creates complications in withholding of VAT. In that case, the value of every single
component shall be mentioned in tender, quotation or invoice separately;
• Supply which is agreed/executed before comes into force of the VAT and SO Act, 2012 but payment is due, VAT shall be paid at the time of
making payment at current applicable rate.

VAT Rate of services for the FY 2022-2023 in Comparison with the FY 2021-2022
11. VAT rate of services for the FY 2022-2023 in comparison with the FY 2021-2022 (Table-l)
SI. Service VAT Rate FY Required to
Area of VAT Exemption 3
Code
Service Name
No. 2022-2023 2021-2022 VDS
(1) (2) (3) (4) (5) (6) (7)
SOO1.OO Hotel and Restaurant:
AC Hotel 15% 15% Yes
S001.10
Non-AC Hotel 7.5% 7.5% Yes
AC Restaurant' 5% 10% Yes
All temporary hotels and restaurants in
1. Bangladesh (temporary means, a hotel and
Non-AC Restaurant 5% 5% Yes
restaurant without having wall, electric fan and
SOO1.20 ' VAT shall be 10% for restaurants with 03 stars or above quality situated at
having not more than two electric lights).
residential hotels which are enlisted under the Civil Aviation Transportation
and Tourism Ministry and restraurants along with alcohol bar.
2. S002.00 Decorators and Caterers 15% 15% Yes
S003.00 Motor Garage, Workshop and Dockyard:
3. S003.10 Motor Garage and Workshop 10% 10% Yes
S003.20 Dockyard 10% 10% Yes
(a) Construction work carried out relating to a
contract signed on or before 30 June 1991; and
4. S004.00 Construction Firm 7.5% 7.5% Yes (b) Work carried out based on a tender issued on
or before 30 June 1991 and contract signed until 30
June 1993.
SOOS.OO Storage & Warehousing and Port:
5. S005.10
Storage & Warehousing
15% 15% No'
(Godown)
S005.20 Port 15% 15% No'
6. S006.00 Cold Storage Exempted Exempted Fully exempted.
7. S007.00 Advertising Agency 15% 15% Yes Death news published on newspaper.
8. SOOS.OO Printing Press and Binding Firm:

Service Name
No. Code 2022-2023 2021-2022 VDS
(1) (2) (3) (4) (5) (6) (7)
SOO8.10 Printing Press 10% 10% Yes
Printing charges on books, journals and
educational instruments for students.
SOO8.20 Binding Firm Exempted Exempted All kinds of binding charges.
9. S009.00 Auction Firm 10% 10% Yes
SOlO.OO Land Developer and Building Construction Organization:
S010.10 Land Developer 2% 2% Yes
10.
Building Construction Organization
01-1600 square feet 2% 2% Yes
S010.20
Above 1600 square feet 4.5% 4.5% Yes
Re-registration (any size) 2% 2% Yes
SOH.OO Video Cassette Shop, Video Game Shop, Audio Video Recording Shop, Audio and Video CD Rental Shop
S011.10 Video Cassette Shop 15% 15% No'
S011.20 Video Game Shop 15% 15% No'
11.
S011.30 Video, Audio Recording Shop 15% 15% No'
SO11.40
Video, Audio and CD Rental
15% 15% No'
Shop
S012.00 Telephone, Teleprinter, Telex, Fax or Internet Agency or SIM Card Supplier:
S012.10 Telephone 15% 15% No'
S012.11 Teleprinter 15% 15% No'
S012.12 Telex 15% 15% No'
12. S012.13 Fax 15% 15% No'
S012.14 Internet Agency 5% 5% No' Only internet service to educational institution.
Tk. 200 (per
Tk. 200 (per
S012.20 SIM Card or e-SIM Supplier SIM card or No'
e-SIM)
SIM card)
13. S013.00 Mechanical Laundry 10% 10% No'

Service Name
No. Code 2022-2023 2021-2022 VDS
(1) (2) (3) (4) (5) (6) (7)
14. S014.00 Indenting Organization 5% 5% Yes
SOlS.OO Freight Forwards and Clearing & Forwarding Agent:
15. S015.10 Freight Forwarders 15% 15% Yes
S015.20 Clearing & Forwarding Agent 15% 15% No'
16. S016.00 Travel Agency Exempted Exempted Fully Exempted.
17. S017.00 Community Center 15% 15% No'
18. S018.00 Cinema (Film) Studio 10% 10% No'
19. S019.00 Photo Maker Exempted Exempted Fully Exempted.
20. S020.00 Survey Agency 15% 15% Yes
2l. S021.00
Plant or Capital Machinery
15% 15% Yes
Rental Agency
22. S022.00 Sweetmeat 15% 15% No'
S023.10 Cinema Hall 10% 10% No'
23.
S023.20 Cinema distributor 10% 10% No'
S024.00 Furniture
Furniture Manufacturer
S024.10
(VAT shall be @ 15%, if
7.5% 7.5% Yes
manufacturer directly sell to
24.
customer)
Furniture Sales Centre
(Subject to having challan for
S024.20 VAT paid @ 7.5% at 7.5% 7.5% Yes
manufacturing stage,
otherwise VAT shall @ 15%)
25. S025.00 WASA 15% 15% No'
26. S026.00 Jewelry 5% 5% No'

Service Name
No. Code 2022-2023 2021-2022 VDS
(1) (2) (3) (4) (5) (6) (7)
(a) Hull insurance premium for a sea-going ship;
(b) Insurance premium paid by Private Sector
Power Generation Company;
27. S027.00 Insurance Company 15% 15% No' (c) Co-insurance for aviation insurance premium
paid in foreign currency; and
(d) Commission paid to an agent.
' Life insurance policy (As perl" Schedule)
28. S028.00
Courier and Express Mail
15% 15% Yes
Service Provider
29. S029.00 Astrologer 15% 15% No'
30. S030.00 Beauty Parlor 15% 15% No'
Individual, Organization or
Agency Engaged in the
31. S031.00 Repairing or Servicing of 10% 10% Yes
Taxable Goods in Exchange
of Consideration
32. S032.00
Consultancy and Supervisory
Firm
15% 15% Yes
33. S033.00 Lessor (Izaradar) 15% 15% Yes
34. S034.00 Audit and Accounting Firm 15% 15% Yes
35. S035.00 Shipping Agent 15% 15% No'
S036.00 AC Bus, Launch, Railway Service:
36.
S036.10 AC Bus Service 15% 15% No'
, Non-AC passenger transport (Except first calss
S036.20 AC Water Transport Service 10% 10% No'
Non-Ac Railway service) (As per 1" Schedule)
S036.30 AC Railway Service 15% 15% No'

Service Name
No. Code 2022-2023 2021-2022 VDS
(1) (2) (3) (4) (5) (6) (7)
(a) Supply school tiffin;
(b) Supply of printed textbook of primary and
secondary stage and equivalent stages against
work order given by the National Curriculum and
Text Book Board;
(c) Supply of cotton;
(d) Supply ofwaste and scrap paper;
37. S037.00 Procurement Provider 7.5% 7.5% Yes (e) Supply ofcullet;
(I) Supply of plastic wastage;
(g) Bone ofcow & buffalo used as input of Gelatin
Capsule;
(h) Supply oflocally collected scrape/broken to
steel mill;
(i) Supply ofjute products; and
OJ Supply of old battery.
Organizer of Cultural
38. S038.00 Program in association with 15% 15% No'
Foreign Artists
S039.00 Satellite Cable Operator and Satellite Channel Distributor:
39. S039.10 Satellite Cable Operator 15% 15% No'
S039.20 Satellite Channel Distributor 15% 15% No'
40. S040.00 Security Service 10% 10% Yes
41. S041.00 Marriage Media 15% 15% No'
42. S042.00 Auto or Mechanical Sawmill 10% 10% No'

Service Name
No. Code 2022-2023 2021-2022 VDS
(1) (2) (3) (4) (5) (6) (7)
Television and Online
43. S043.00 Broadcasting Media Program 15% 15% Yes
Supplier
44. S044.00 BRTA Service 15% 15% No'
45. S045.00 Lawyers/Legal Advisor 15% 15% Yes
46. S046.00
Health Club and Fitness
Center
15% 15% No'
47. S047.00 Sports Organizer 10% 10% No'
Transport Contractor:
10% 10% Yes
48. S048.00
(Except Petroleum Goods)
Only food grain transport service.
Transport Contractor
5% 5% Yes
(Petroleum Goods)
49. S049.00
Rent-a-Car Provider (except
15% 15% Yes
taxi cab)
S050.00 Architect, Interior Designer or Interior Decorator and Graphic Designer:
50. S050.10
Architect, Interior Designer
15% 15% Yes
or Interior Decorator
S050.20 Graphic Designer 15% 15% Yes
51. S051.00 Engineering Firm 15% 15% Yes
52. S052.00
Sound and Lighting
15% 15% Yes
Equipment Rent Provider
53. S053.00 Participant in Board Meeting 10% 10% Yes
54. S054.00
Advertisement in Satellite
Channel Programs
15% 15% Yes
55. S055.00 Land Seller Exempted Exempted Fully Exempted.

Service Name
No. Code 2022-2023 2021-2022 VDS
(1) (2) (3) (4) (5) (6) (7)
S056.00
Banking and Non-banking
15% 15% No'
56.
Service Provider
S056.10
Mobile Banking Service
15% 15% No'
Provider
57. S057.00 Electricity Distributors 5% 5% No' Electricity used in irrigation and cold storage.
58. S058.00
Chartered Aeroplan or
15% 15% Yes
Helicopter Rent Provider
59. S059.00
Glass-sheet laminating
Organization
15% 15% No'
60. S060.00 Purchaser of Auction Goods 7.5% 7.5% Yes
61. S061.00 Credit Card Service Provider 15% 15% No'
62. S062.00 Money Changer Organization 15% 15% No'
63. S063.00 Tailoring Shop and Tailors 10% 10% No' Non-AC Tailoring shop and tailors.
S064.10 Amusement and Theme Park 7.5% 7.5% No'
Picnic Spot. Shooting Spot
64. and Tourism Spot or
S064.20
Establishment (Including
Exempted Exempted Fully exempted.
Historical Place)
65. S065.00
Cleaning or Maintenance
10% 10% Yes
Agency
66. S066.00 Lottery Ticket Seller 10% 10% Yes
67. S067.00 Immigration Advisor 15% 15% Yes
68. S068.00 Coaching Center 15% 15% No'
69. S069.00 English Medium School 5% 5% No'
S070.00 Private University and Medical & Engineering College:
70.
S070.10 Private University Exempted Exempted Fully exempted.

Service Name
No. Code 2022-2023 2021-2022 VDS
(1) (2) (3) (4) (5) (6) (7)
S070.20
Private Medical and
Exempted Exempted Fully exempted.
Engineering College
71. S071.00 Program (Event) Organizer 15% 15% Yes
72. S072.00
Man Power Supply or
15% 15% Yes
Management Organization
73. S073.00 Manpower Export Agency Exempted Exempted Fully exempted.
(a) Factory rent paid by a registered or enlisted
producer or manufacturer;
(b) Space/structure fully used for residential
74. S074.00
Space and Structure Rent
15% 15% No'
purpose and structure used for commercial
Receiver (Office Rent) purpose length, not more than 150 square feet;
(c) Rent paid by ITES organization registered
under service code S099.10; and
(d) Showroom rent run by women entrepreneur.
75. S075.00 Stock and Security Broker Exempted Exempted Fully exempted.
76. S076.00
Social and Sports Related
10% 10% No'
Club
77. S077.00 Tour Operator Exempted Exempted Fully exempted.
Seller of Readymade
78. S078.00 Garments having own brand 7.5% 7.5% No'
or not
79. S079.00 [Social Media and Virtual Business1Om;tt"' bySRO 234 dat'" 30 j,re 20.9
80. S080.00 Ride Sharing 5% 5% No'
8L S099.10
Information Technology
5% 5% Yes
Enabled Services

Service Name
No. Code 2022-2023 2021-2022 VDS
(1) (2) (3) (4) (5) (6) (7)
S099.20 Other Miscellaneous Services 15% 15% Yes
Dying, printing, finishing and calendaring service
relating to grey fabrics.
S099.30 Sponsorship Services 15% 15% Yes
S099.40 Meditation Service 5%4 Exempted No'
S099.50 Credit Rating Agency 7.5% 7.5% Yes
S099.60 Product Sale through Online 5% 5% No'
Notes:
1. Where "No" is mentioned in Column-6 ofTable-1, VAT shall not be deducted at source upon receiving valid Mushak-6.3 otherwise,
VAT shall be deducted at source at the applicable rate;
2. Where ''Yes'' is mentioned in column-6 of Table-1, VAT shall be deducted at source mandatorily whether Mushak-6.3 received or
not;
3. The above exemptions are provided by SRO No.163/2022 dated 01 June 2022. To get exemption benefit, the service provider shall
submit monthly VAT return regularly and maintain books of accounts required as per section 51, 53, 54, 64 and 107 of VAT and SD
Act, 2012.
4. 5% VAT is determined on meditation service by SRO 230/2022 dated 28 June 2022.

VAT rate of goods as per 3rd schedule for the FY 2022-2023 in comparison with the FY 2021-2022
12. VAT rate of goods as per 3rd schedule for the FY 2022-2023 in comparison with the FY 2021-2022 (Table-2)
A. In case of local supply offoIIowinggoods, VATshaII be imposed @ 5%:
Heading
H.S.Code Description of Goods
VAT Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
04.02 Concerned H.S. Code Powder milk manufacturing from liquid milk 5% 5%
09.04
09.09 Concerned H.S. Code Crushed Pepper, Coriander, Ginger, Curcuma or Mixed of these spices 5% 5%
09.10
11.05 1105.20.00 Potato flakes 5% 5%
11.08 1108.12.00 Maize (Corn) Starch 5% 5%
15.14 Concerned H.S. Code Rapeseed oil, colza seed oil and canola oil 5% 5%
19.05 Concerned H.S. Code Machine Prepared biscuit 5% 5%
19.05 Concerned H.S. Code Hand-made biscuit (above equivalent per kg Taka 150) 5% 5%
19.05 Concerned H.S. Code Cake (above equivalent per kg Taka 250) 5% 5%
20.01 Concerned H.S. Code Pickle (Bottled and packed) 5% 5%
20.01 Concerned H.S. Code Sauces/Chutney 5% 5%
20.02 Concerned H.S. Code Tomato paste/Tomato ketchup/Tomato sauces (Bottled and packed) 5% 5%
20.08 Concerned H.S. Code Mango, Pineapple, Guava and Banana Pulp, tamarind paste 5% 5%
20.08 Concerned H.S. Code Mango bar 5% 5%
20.09 Concerned H.S. Code Mango juice 5% 5%
20.09 Concerned H.S. Code Pineapple juice 5% 5%
20.09 Concerned H.S. Code Guava juice 5% 5%
20.09 Concerned H.S. Code Tamarind juice 5% 5%
27.01 Concerned H.S. Code Coal generating from Boro Pukuria coal mine 5% 5%
27.10 Concerned H.S. Code Burn/unusable transformer oil (in the case of reprocessed) 5% 5%
27.10 Concerned H.S. Code Lubricating oil/Rubber processing oil 5% 5%

Heading
VAT Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
27.11 Concerned H.S. Code LPG Gas 5% 5%
27.13 Concerned H.S. Code Bulk Imported Petroleum Bitumen 5% 5%
39.20 Concerned H.S. Code Supplied Laminating Driving License to BRTA 5% 5%
39.24 Concerned H.S. Code
Tableware, kitchenware, other household articles, hygienic and such any goods
5% 5%
including toilet articles, of plastics (except Tiffin box water bottle)
From (1) CCB/CCA Treatment, Cryojot treatment, sejand and CCA treatment (self-
44.03
Concerned H.S. Code
wood/ with other supplied wood)
5% 5%
to (2) Diffusion treatment, seasent treatment, seasent and Diffusion, seasoning
44.09 (self-wood/with other supplied wood)
Produced by all paper mills-
(A) Creamlaid/white writing paper
(1) From above 50/55 gm/m2
(2) From above 35/40 gm/m2
(B) White rolled paper from 55 to 59.99 gm/m2
48.02 Concerned H.S. Code (C) White printing paper- 5% 5%
(1) 60 gm/m2 or above
(2) 55 gm/m2 to 59.99 gm/m2
(3) 50 gm/m2 to 54.99 gm/m2
(4) 45 gm/m2 to 49.99 gm/m2
(5) 35 gm/m2 to 44.99 gm/m2
(a) Liner paper
48.04 Concerned H.S. Code (b) White liner paper 5% 5%
(c) Craft liner paper
48.05 Concerned H.S. Code Medium paper 5% 5%
(1) Kitchen towel (24-26 GSM)
5% 5%
(2) Toilet tissue (18-24 GSM)

Heading
VAT Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
(3) Napkin Tissue (20-24 GSM)
(4) Facial Tissue/pocket tissue (12-16 GSM)
(5) Hand towel/paper toweljclinical bed sheet
48.20 Concerned H.S. Code Exercise books/spiral note books/Khata (from 45 to above GSM) 5% 5%
48.22 Concerned H.S. Code Paper Cone 5% 5%
From
52.02
Concerned H.S. Code
(a) Cotton yarn waste, which is known as hard waste and which is not used for
5% 5%
to fabric making
52.07
From
52.08
Concerned H.S. Code 5% 5%
Waste Grey Denim
to
52.12
From Fabrics made of man-made fiber, all type, except under-mentioned cases,
54.02 namely:
to (1) Reap of fiber and waste piece (not more than 1 meter long)
54.10 All Concerned H.S. (2) Fabrics made of man-made fiber, which is processed in any other factory 5% 5%
and Code except weaving or sowing factory
55.12 (3) Fabrics supplied free of cost as a sample to Bangladesh Standard and
to Testing Institution (below the size of 3 square meters) and
55.16 (4) Taps and Braids
68.02 Concerned H.S. Code Solid stone 5% 5%
(a) Ferro-manganese and Ferro-silico-manganese alloy
5% 5%
[b) Ferro-silico alloy
72.09 Concerned H.S. Code HR Coil to CR Coil 5% 5%
72.10
Concerned H.S. Code
CR Coil to GP sheet
5% 5%
72.12 CR Coil to GP sheet/coil (colored)

Heading
VAT Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
CR Coil to CI sheet
CR Coil to CI sheet (colored)
HR Coil to GP sheet
HR Coil to GP sheet/coil (colored)
HR Coil to CI sheet
HR Coil to CI sheet (colored)
72.17 Concerned H.S. Code GIWare 5% 5%
Nails
Top nails
5% 5%
(a) Various size and types of Screw, galvanized/non galvanized/zing
73.18
cutting/nickel cutting/other metal cutting/except cutting
(b) Joint (connector), nut, bolt, various size and types of galvanized/non
5% 5%
76.16
galvanized/zing cutting/nickel cutting/other metal cutting/except cutting
(c) Electric line hardware and poll fittings, which MS and steel make (Except
nut bolt)
Aluminum and kitchen articles made by aluminum or other household articles,
5% 5%
sanitary ware and parts thereof
Blades made from stainless steel,
5% 5%
Blade made from carbon steel strips
Diesel engines manufactured by Bangladesh Diesel Plant Ltd., Joydebpur,
Gazipur-
84.08 Concerned H.S. Code (a) 1 cylinder 210 diesel engine 5% 5%
(b) 2-cylinder 912 diesel engine
(3) 3-cylinder diesel engine
a. 5 KVA Electrical transformer
85.04 Concerned H.S. Code b. 10 KVA Electrical transformer 5% 5%
c. 11 Kilovolt potential Electrical transformer (KAV standard-200 VA)

Heading
VAT Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
d. 11 Kilovolt Electrical transformer (KAVstandard-50 VA)
e. 15 KVA Electrical transformer
f. 20 KVA Electrical transformer
g. 25 KVA Electrical transformer
h. 33 Kilovolt potential Electrical transformer (KAVstandard-400 VA)
i. 33 Kilovolt current transformer (KAV standard- 50VA)
j. 37.5 KVA Electrical transformer
k. 50 KVA Electrical transformer
I. 75 KVA Electrical transformer
m. 100 KVA Electrical transformer
n. 200 KVA Electrical transformer
0.250 KVA Electrical transformer
p. 300 KVA Electrical transformer
q. 315 KVA Electrical transformer
r. 400 KVA Electrical transformer
s. 500 KVA Electrical transformer
t. 630 KVA Electrical transformer
u. 700 KVA Electrical transformer
v. 800 KVA Electrical transformer
w. 1000 KVA Electrical transformer
x. 1200 KVA Electrical transformer
y. 1500 KVA Electrical transformer
z. 2000 KVA Electrical transformer
(a) from 1 to 10 watt electric Energy saving bulb
(b) from 11 to 20 watt electric Energy saving bulb
85.39 85.39.31.10 (c) from 21 to 30 watt electric Energy saving bulb 5% 5%
(d) from 31 to 50 watt electric Energy saving bulb
(e) Above 50 watt electric Energy saving bulb
Tube light
5% 5%
18 watt and 36 watt

Heading
VAT Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
(A) Manufactured by Bangladesh Machine Tools Factory Ltd., Gazipur, At stage
manufacturing:
(1) Retro-Reflective Vehicle Number Plate, Vehicle Type (I) & (II)
85.42
(2) Retro-Reflective Vehicle Number Plate, Vehicle Type (Ill)
Concerned H.S. Code (3) Vehicle Ownership Card 5% 5%
39.20
(B) Supplied by Bangladesh Road Transport Authority (BRTA) to Consumer -
(1) Retro-Reflective Vehicle Number Plate, Vehicle Type (I) & (II)
(2) Retro-Reflective Vehicle Number Plate, Vehicle Type (Ill)
(3) Vehicle Ownership Card
(a) Bus (52 seated capacity - General)
(b) Bus (52 seated capacity - Chair deluxe)
(c) Bus (40 seated capacity - General)
(d) Bus (40 seated capacity - Chair deluxe)
5% 5%
(e) Bus (36/40 seated capacity - Luxury/super luxury type)
(I) Bus (36 seated capacity - Air conditioned)
(g) Mini Bus (30 seated capacity - General)
(I) Mini Bus (24/30 seated capacity - Deluxe type)
(a) Truck (Carrying Capacity 7 Tons)
(b) Truck Van (Carrying Capacity 7 Tons)
(c) Truck (Carrying Capacity 5 Tons)
87.04 Concerned H.S. Code (d) Truck Van (Carrying Capacity 5 Tons) 5% 5%
(e) Truck (Carrying Capacity 3 Tons)
(I) Truck Van (Carrying Capacity 3 Tons)
(g) Truck Van/Pick-up (Whether Passenger bus or not carrying capacity 1 to
1.5 Tons
89.01 (1) Landing Craft;
to Concerned H.S. Code (a) Landing Craft Vehicle and personal (LCVP) 5% 5%
89.07 (b) Landing Craft Utility (LCU)

Heading
VAT Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
(c) Landing Craft Tang (LCT)
(d) Landing Ship Tank (LST)
(e) Landing Craft Logistics (LCL)
(I) Landing Ship Logistics (LSL)
(g) Landing Craft Personal
(2) Landing Platform Helicopter (LPH)
(3) Patrol Boat/Gun Boat/Costal Patrol Boat
(4) First Attack Craft (Missile Boat, Torpado Boat, Fac G)
(5) OPD/Corvate/Large Patrol Craft (LPC)
(6) Patrol Boat/Harbar Patrol Boat/Inland Patrol Vessel
(7) Pilot Boat/Pilot Lunch/Security Boat
(8) Survey Vessel
(9) Tag
(10) Mooring Boat
(11) House BoatfWater Boat (without Engine)
(12) Dresser
(13) Floating Crane/Buoy Lifting VesselfSalvage vesselfSearch and rescue
Vessel
(14) Life Boat
(15) Garbage Disposal Vessel
(16) Pontoon
(17) Fire Fighting Ship
(18) Hospital Ship (Not self-moving)
(19) Fishing Trawler Boat
(20) Wooden Boat/GRP Boat/Speed Boat/Ferry/Driving Boat/Motor Lunch/
Survey Boat/Inland Solar Craft/Buoy/Moring Buoy/Crane Boat/Aluminium
Survey Boat

Heading
VAT Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
89.01 Goods carrying Mechanical River boat
to Concerned H.S. Code Passenger Mechanical River boat 5% 5%
89.07 Other Mechanical River boat (Goods/Passenger carrier)
90.03
90.03.11 Optical Plastic Frame
5% 5%
90.03.19 Optical Metal Frame (With spring or not)
Sun class (Plastic frame)
5% 5%
Sun class (Metal frame)
90.04 90.04.90
Reading Class (Plastic frame)
5% 5%
Reading Class (Metal frame)
90.04 Concerned H.S. Code Mattress made by coconut coir 5% 5%
B. In case of local supply offoIIowinggoods, VATshaII be imposed @ 7.5%:
Heading
VAT Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
48.09 Concerned H.S. Code Self-copy paper 7.5% 7.5%
48.10 Concerned H.S. Code Duplex board/ coated paper 7.5% 7.5%
48.13 Concerned H.S. Code CigareUe/Biri paper 26+/- 2gm/m2 7.5% 7.5%
Simplex paper
48.23 Concerned H.S. Code Packing paper 7.5% 7.5%
Colored paper
C. In case oflocal supply offoIIowmggoods, VATshaII be Imposed @ 10%:
Heading
VAT Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
68.10 Concerned H.s. Code Electric Pole 10% 10%

Heading
VAT Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
73.08 Concerned H.s. Code Electric Pole (made by steel plate) 10% 10%
D. In case of local supply of the following goods, VAT shall be imposed at the following specific rate:
Heading
Specific VAT Amount FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
48.01 Concerned H.s. Code Newsprint Tk. 1,600 (Per Metric Ton) Tk. 1,600 (Per Metric Ton)
From
52.05 to All H.S. Code Cotton yarn Tk. 3 (three)/Per KG Tk. 3 (three)/Per KG
52.07
From
54.02 to
Yarn made with the maximum of man-made fibre
54.10
and from
All H.S. Code and other fibres, where man-made fibre is Tk. 3 (six)/Per KG Tk. 6 (six)/Per KG
55.12 to
predertimined
55.16
(a) General made brick except machine (non-
Tk. 450 (Per thousand) Tk. 450 (Per thousand)
refractory building bricks), except facing bricks
(b) General bricks produce by mechanical process or
machine (non-refractory building bricks), except Tk. 500 (Per thousand) Tk. 500 (Per thousand)
69.04 Concerned H.s. Code
facing bricks
(c) Bricks produc by mechanical process or machine
First grade-
(1) Three-hole sailent bricks Tk. 700 (Per thousand) Tk. 700 (Per thousand)
(2) Ten-hole sailent bricks
(3) Seventeen-hole sailent bricks
Compiled by: Masum Gazi In association with: Mahmudul Hasan Page2S of30

Heading
Specific VAT Amount FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
(4) Multi cored bricks
Second grade-
(1) Three-hole sailent bricks
Tk. 700 (Per thousand) Tk. 700 (Per thousand)
(2) Ten-hole sailent bricks
(3) Seventeen-hole sailent bricks
(d) Bricks cheeps Tk. 700 (Per 100 cft) Tk. 700 (Per 100 cft)
(e) Mecad batts Tk. 500 (Per 100 cft) Tk. 500 (Per 100 cft)
72.04 All H.S. Code Scrap/Ship scrap Tk. 1,000 (Per Metric Ton) Tk. 1,000 (Per Metric Ton)
M.s. Product:
(a) M. S. goods which is produced by imported/local
Tk. 1,400 (Per Metric Ton) Tk. 1,200 (Per Metric Ton)
collected re-rollable scrap
From (b) All types ofballet and ingot which is produced by
72.13 to Concerned H.s. Code imported/ local collected meltable scrap
72.16 (c) M. S. goods which is produced from ballet and
ingot
(d) M. S. goods which is produced from ballet and
ingot and dirt/mutable scrap
Other VAT rates as per 3rd schedule:
• For trader, VAT rate is 5%;
• For local supply of medicine, VAT rate is @ 2.4%;
• For local supply of diesel, kerosene, octane, petrol, furnace oil and LPG gas VAT rate is @ 2%;
• For wholesaler of clothes & paper, VAT rate would be 1.5%, if complied with the conditions and procedures as mentioned in
the GO No. 03/VAT/2022 dated 01 June 2022 and GO No. 09/VAT/2022 dated 28 June 2022.

Supplementary Outy (SO) Rate for the FY 2022-2023 in Comparison with the FY 2021-2022
13. Goods subject to Supplementary Outy (SO) at supply stage (Table-3)
Heading
SD Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
19.02 All H.s. Codes Cooked Pasta, lasagne 10% 10%
20.09 All H.s. Codes Fruit juices and fruit drinks 10% 10%
21.05 All H.s. Codes All kind of ice cream 5% 5%
21.06 2106.90.90
Food preparation for distribution, such all kind Burger, Sandwich, Chicken fry, French fry,
Hot Dog, Pizza
10% 10%
22.01 All H.s. Codes Mineral waters (Up to 3 Liter) 5% 5%
2201.10.00
Carbonated beverage [according to Bangladesh Standard (BDS 1123:2013), in cold drinks 25% 25%
22.02
the specified range of elements of caffeine up to 145 milligram per liter]
2202.90.00
As defined in Bangladesh Standard (BDS 1123:2013), for carbonated beverage the cold 35% 35%
drinks' elements are different from the specified range of elements
2402.20.00 Cigarettes Containing Tobacco 65% 65%
24.02
Hand-made or other than machine-made Bidi (With or without filter) and others
2402.90.00 40% 40%
24.03.99.00 Jarda (Retail price per 10gm Taka 40 i.e., per gm Taka 4) 55% 55%
24.03
24.03.99.00 Gul (Retail price per 10gm Taka 20 i.e., per gm Taka 2) 55% 55%
27.11 2711.21.00 Natural Gas (Gaseous state) 0% 0%
32.08 to
32.10
All H.s. Codes Paints 5% 5%
Beauty or make-up preparations and preparations for the care of the skin (other than
medicaments), including sunscreen or sun tan preparations; including hand, nail or leg make up
preparations:
33.04 3304.10.00 Lip make-up preparations 10% 10%
3304.20.00 Eye make-up preparations 10% 10%
3304.30.00 Manicure or pedicure preparations 10% 10%
3304.91.00 Powders, whether or not compressed 10% 10%

Supplementary Duty (SD) Rate for the FY 2022-2023 in Comparison with the FY 2021-2022
Heading
SD Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
3304.99.00 Other (other than petroleum jelly and baby lotion) 10% 10%
Preparations for use on the hair:
3305.10.00 Shampoo 15% 15%
33.05 3305.20.00 Preparations for permanent waving or straightening 10% 10%
3305.30.00 Hair lacquers 10% 10%
3305.90.00 Other 10% 10%
3307.10.00 Pre-shave, shaving or after-shave preparations 15% 15%
3307.20.00 Personal deodorants and antiperspirants 15% 15%
3307.30.00 Aromatic bath salts and other bath preparations 15% 15%
33.07
3307.49.00
Used other preparations for dispelling bad smell of room (except augorbati and similar
15% 15%
things)
3307.90.00 Others 15% 15%
48.13 All H.s. Codes Cigarette paperjBidi paper (whether or not cut to size or in the form of booklets or tubes) 25% 25%
69.07 All H.s. Codes
Gray ceramic stone paving plate (plaque) paving, hearth or wall tiles; ceramic mosaic cubes
15% 15%
and the like, whether or not on a backing; finishing ceramics
69.08 All H.s. Codes
Bright ceramic stone paving plate (plaque) paving, hearth or wall tiles; ceramic mosaic
15% 15%
cubes and the like, whether or not on a backing; finishing ceramics
Concerned Ceramic sink, basin, pedestal basin, commode or its parts and other fittings and fixtures of
10% 10%
H.s. Codes bathroom (other than the long pan)
69.10
Concerned
H.s. Codes
Ceramics bathtub and jacuzzies, shower, shower tray 30% 30%
85.39 All H.s. Codes Other filament lamps except ultra-violetjinfra-red lamps; 0% 0%
Compiled by: Masum Gazi In association with: Mahmudul Hasan Page2S of30

Supplementary Outy (SO) Rate for the FY 2022-2023 in Comparison with the FY 2021-2022
14. Services subject to Supplementary Outy (SO) at supply stage (Table-4)
Heading
Service Code Description of Services
SD Rate FY
No. 2022-2023 2021-2022
(1) (2) (3) (4) (5)
SOO1.00 Hotel and Restaurant:
Hotel: On those bills if any drink is supplied of the nature of wine in the hotel while
S001.10 supplying food, drink and lodging or any type of "floor show" is organized (even if 20% 20%
SOOl arranged for one day in a year)
Restaurant: On those bills ifany drink is supplied of the nature ofwine in the hotel while
SOO1.20 supplying food, drink and lodging or any type of "floor show" is organized (even if 20% 20%
arranged for one day in a year)
S012 S012.10 Telephone: Services provided by using SIMjRlM card of mobile phone only 15% 15%
Organizer of entertaining cultural function with foreign artiste: Provided that this
S038 S038.00 provision shall not apply in the case of organizing cultural functions with foreign artiste 10% 10%
under bilateral cultural exchange program
S039 S039.20 Satellite Channel Distributor 25% 25%
Service by BTRA: On the service value (charge or fee) received against the provision of
S044 S044.00
service relating to receipt or renewal of registration, road permit, fitness certificate,
15% 15%
ownership certificate etc. of vehicles given by Bangladesh Road Transport Authority
(except passenger bus, cargo truck and lorry, three-wheeler, ambulance and school bus)
S058 S058.00
Organization renting out chartered aircraft or helicopter: Organization renting out
30% 30%
chartered plane or helicopter (except ambulance)

Supplementary Duty (SO) Rate for the FY 2022-2023 in Comparison with the FY 2021-2022
15. References
1. Standard VAT rate (15%) is determined by section 15 of the VAT and SD Act, 2012 and reduced VAT rate (below 15%) is
determined by 3rrl schedule of the VAT and SD Act, 2012.
2. The above presentation is prepared based on:
i. VAT & SD Act, 2012 & VAT & SD Rules, 2016;
ii. Finance Act, 2022;
iii. SRO No. 240/2021, 179/2022 and 227/2022 (VDS related);
iv. SRO No. 186/2019, 234/2019, 160/2021, 239/2021, 172/2022 and 226/2022 (Definition of services);
v. SRO No.163/2022 and 225/2022 (Exemption).
3. The green color represents changes/amendments and red color represents the omission made by the Finance Act, 2022 and SROs
published during the month ofJune 2022.
16. Declaration
This document is prepared on 05 July 2022, ifany changes are made by the National Board of Revenue afterward, then those new provisions/orders
shall prevail.
If you have any query, you can communicate bye-mail at: masumgazi613@gmail.com or on
LinkedIn: https://www.linkedin.com/in/taxprofessionalbd/
Thank You

Guide to VAT Deduction at Source Rules & Rates FY 2022-23

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Guide to VAT Deduction at Source Rules & Rates FY 2022-23

Similar to Guide to VAT Deduction at Source Rules & Rates FY 2022-23 (20)

More from Masum Gazi

More from Masum Gazi (18)

Recently uploaded

Recently uploaded (20)

Guide to VAT Deduction at Source Rules & Rates FY 2022-23