Permanent Residency and Residence Permit in UK

by Tahmidur Remura Wahid | Dec 15, 2022 | 2023, Law

Residence permit in UK

A residence permit is needed if you want to live in the UK for more than six months at a time.

A residence permit is an immigration document that lets people from other countries live, work, use public funds, and settle in the country. Here are some of the most common types of permission to live in the UK.

Getting a UK biometric residence permit shows that you are living, working, or going to school in the UK legally. You can get a UK biometric residence permit if you:

• Apply to come to the UK for longer than six months.
• Extend your visa for longer than six months.
• Apply to settle in the UK.
• Transfer your visa to a new passport.
• Apply for certain Home Office travel documents.

The BRP has a chip that prevents it from being forged or misappropriated, with dimensions of 86mm x 54mm, and is made of polycarbonate.

How Do I Apply for a Biometric Residence Permit?

If you are applying for a UK visa or to move there, you do not need to apply for a biometric residence permit separately. You will need to make an appointment with the UK Visa and Citizenship Application Services whether you are applying from inside or outside the UK.

At this appointment, you will have to give some information about yourself for your biometric residence permit. It takes about five to ten minutes to finish. If your visa application is accepted, you’ll get a BRP that you can pick up once you’re in the UK.

How Long Is a UK Biometric Residence Permit Valid?

The biometric residence permit is valid for ten years, but if you were granted indefinite leave to remain within the last few years, then your BRP may expire on the 31st of December, 2024.

In addition, those granted a five-year indefinite leave to remain are also eligible for BRPs with an expiration date of December 31st, 2024.

How Long Does It Take To Get a UK Biometric Residence Permit?

Once the Home Office sends you a decision letter stating that you are permitted to remain in the UK, you will receive your BRP within ten days.

However, if you apply from the Isle Man, Isles of Scilly, and Scottish Highlands and islands, it might take longer.

UK Residence Card

You can no longer get a UK residence card, which is also called an EEA biometric residence card (BRC). As an EU citizen, you need another type of permission to stay in the UK, like settled or pre-settled status under the EU Settlement Scheme, if you want to keep living there.

EU Settlement Scheme

The EU Settlement Scheme was made so that people from the EU could live in the UK after Brexit. Most people had until June 30, 2021, to sign up for the EU Settlement Scheme. You can still apply if you or a member of your family lived in the UK by December 31, 2020, and you are from the EU, Switzerland, Norway, Iceland, or Liechtenstein. Also, you have to either:

• Meet one of the criteria for a later deadline application.
• Have valid reasons for not applying by 30 June 2021.

Pre-Settled Status

The pre-settled status is granted to the EU settlement scheme applicants who cannot demonstrate that they lived in the UK for five uninterrupted years.

You must have started living in the UK by 31 December 2023 to be eligible to apply. After being given pre-settled status, you will be given five years to remain in the UK.

You are allowed to stay for two years outside of the UK and not lose the pre-settled status. However, you will not be able to apply for the settled status. In order to qualify for pre-settled status, you need to prove:

• You are an EEA citizen, or
• You are a family member of an EEA citizen, or
• You are a family that gained the right of residence through a relationship with an EEA citizen, or
• You are a person with a derivative right to reside, or
• You are a person with a Zambrano right to reside, or
• You have started to live in the UK on 31 December 2020, and
• You are not eligible for settled status because you have not completed the qualifying five-year period of residence.

There are no fees for a pre-settled status application. It usually takes five working days for an application to be processed.

Settled Status

People who apply for the EU Settlement Scheme and can prove that they have lived in the UK, the Channel Islands, or the Isle of Man for at least five years without stopping are given settled status. Unless you are a new family member, you must have moved to the UK by December 31, 2020.

The settled status is commonly known as the indefinite leave to remain.

The Indefinite Leave to Remain (ILR)

The UK permanent residence permit is another name for the indefinite leave to stay. If you stay in the UK for a certain amount of time, you might be able to apply for indefinite leave to stay. As an ILR holder, you no longer have to follow any rules about how long you can stay in the UK. You can work, study, and do business there for as long as you want.

Routes to Indefinite Leave to Remain

Visas that provide a route to ILR include the following:

• ILR based on a work visa.
• Skilled Worker Visa.
• Scale-up Worker visa.
• Global Talent visa.
• Tier 1 Entrepreneur.
• Investor visa.
• Innovator visa.
• Representative of an overseas business.
• Turkish Worker or Businessperson visa.
• Private servant in a diplomatic household with an International Agreement visa or a domestic visa.
• ILR based on family.
• Spouse visa (partner visa).
• Parent visa.
• Child dependent visa.
• Adult dependent relative visa.
• Private life route.
• If your partner is deceased.
• If your relationship has ended due to domestic violence.
• ILR based on nationality.
• Ancestry visa.
• Other routes include:
• Discretionary leave.
• Status as a refugee or humanitarian protection.
• Returning residents who have previously held ILR and are a refugee or have humanitarian protection or Discretionary leave.
• Personnel of armed forces.

What Are the Requirements for Indefinite Leave to Remain?

To be eligible for Indefinite Leave to Remain, you must reside in the UK for a certain period that depends on the categories of immigration:

Except for completing your period of staying in the UK, you will also need to submit:

• Proof that in any 12 months of the qualifying period, you are not absent from the UK for more than 180 days.
• Proof that you have passed a Life in the UK Test.
• English proficiency evidence.
• Provide evidence that your application meets the General Grounds for Refusal.

How Long Can I Stay in the UK With a Indefinite Leave to Remain?

The validity of indefinite leave to remain is indefinite, but it may expire if you stay away from the UK for two years, regardless of the expiration date of the BRP or passport stamp.

UK Residence Permit for Commonwealth Citizens

Commonwealth citizens can get a UK residence permit through:

• UK Ancestry Visa.
• Certificate of Entitlement for the Right of Abode, and
• Residence permits under the Windrush Scheme.

UK Ancestry Visa

As a commonwealth citizen, you can apply for a UK ancestry visa if one of your grandparents was born in the UK and you intend to work there. A UK ancestry visa is valid for five years. To be eligible for a UK ancestry visa, you must:

• Be 17 years or older.
• Have enough money to support yourself or any other dependents without help from public funds.
• Prove that you can and plan to work in the UK.
• Prove that you have a grandparent born:
• In the UK, the Channel Islands, or the Isle of Man.
• Before the 31st of March 1922 in what is known now as Ireland.
• On a ship or aircraft registered in the UK or belonging to the UK government.

Certificate of Entitlement for the Right of Abode

A certificate of entitlement for the right of abode is a vignette inside your passport or any travel documents proving that you have the right of abode in the UK. Commonwealth citizens have the right of abode because of their parents or spouse.

Residence Permits Under the Windrush Scheme

The Windrush Scheme enables Commonwealth citizens and their children of the UK to obtain documentation confirming their status free of charge. You can apply for the Windrush scheme within and outside of the UK. You can apply to prove you can live and work in the UK if:

• Before the year 1973, you came to the UK from a Commonwealth country.
• Your parents came to the UK from a Commonwealth country before 1973.
• You came to the UK before the 31st of December 1988 from any country and now live in the UK.

To get UK PR, it is required to live in UK for 5 years under one of the following categories:

• Tier 1
• Tier 2 of the points based system: for the skilled professionals from overseas who has a valid job offer in United Kingdom
• Businessperson
• Investor
• International students and Research Fellows
• Representative of an overseas newspaper, news agency, PR agency or broadcasting organization
• Private servant in a diplomatic household
• Domestic worker in a private household
• Overseas government employee
• Self-employed lawyer or solicitor
• UK ancestry
• Highly skilled migrant under the Highly Skilled Migrant Programme (HSMP)
• Retired person of independent means
• Sole representative of an overseas firm

One can also apply for UK PR if you have a family member or a partner who is a British citizenship. 

Eligibility Criteria

Applicant must be able to submit proof of living in the UK for a pre-set time duration, legally or otherwise corresponding to their granted visas. The following Table shows time period of stay in UK to be completed the stated categories:

Eligibility for settlement as a family member of a UK Citizen

Applicant must be a partner of a UK citizen or of one permanently settled in the UK. He or she must be currently on a family visa (of 2, 5 or 10 years) as a partner or spouse the partner who is a British citizen.

Marriage

The applicant for a partner visa is eligible if they are married to a British partner, in a civil partnership, or in a long-term relationship with a British partner who is not married.

Living together

You must show that you are living together and plan to stay together after you get residency. Proof can come in the form of a joint bank account, a joint lease, or other official papers.

‘Life in the UK’ Test

It is compulsory to pass the ‘Life in the UK’ test. This test is designed in a simple manner to evaluate your knowledge of British life and assess your reverence and compatibility towards it.

English test

Since English is the official language of communication in all parts of British life, applicants who don’t speak English as their first language must take this test to show that they can speak and understand it well. This requirement can be met with a degree or certificate from a UK school that is known and respected.

Proof of finances

In case you have dependant family, your finances need to be in order as per the prescribed limits of the immigration system. Currently the funding expectations to support your family if you are on the 5-year route visa are as follows:

• At least £18,600 a year in case of no dependents.
• At least £22,400 a year in case of one dependent child.
• Extra £2,400 a year for each child above the limit on one.

This way of figuring out income includes all children under 18 except those who were born in the UK or EU. The limits are based on the combined income of both people.

For both the 2-year and 10-year routes, there is no minimum amount of money that must be made. When submitted, proof of finances must show that the applicant can take care of their family without help from UK public funds.

Permanent residence as a family member of someone settled in the UK

Spouse or partner must be settled in the UK on the basis of a work visa (Tier 1, 2 or 5 visa). Applicant must be married /in a civil partnership/ be in a relationship for at least 2 years to be eligible for permanent residence.

Eligibility for partners

You must currently be on a visa as your partner’s dependent. If you received your visa after your partner was granted settled status, you will need to apply as a partner of a settled person.

If your current visa was issued before 9 July 2012, you must have lived with your partner for at least 2 years. This will go up to 5 years if your visa was granted on or after 9 July 2012.

When you apply, you must still be living together with your partner and intend to continue doing so. You should not be claiming benefits (accessing public funds) when you apply.

English Language and knowledge of life in the UK requirements also apply so you should make sure you satisfy these requirements before making your application.

Documentation:

• Current Pay slips
• Bank account statements
• Address proof (like rent or lease contract etc.)
• Council tax letters
• Proof supporting calculation of an applicant’s disclosed other sources of income, if any.
• Appointment Letter from employer on company Letterhead with signatory authority stamp and date in case the applicant is a job employee.
• In case of business owners, material apropos must be provided regarding registered business address, relevant valid permits etc.

Application Process

Carefully check all requirements for eligibility criterions and compile all the relevant documents to submit as proof. Provide access to your immigration history, with details of UK visas since your arrival. 

Categories of application forms offered:

Select the one suitable to the applicant’s personal background out of the two categories:

Set(O): 

Applicable to partner of a UK citizen or the parent of a child settled in the UK.

Documents as proof of your legal relationship status:

• Marriage / Birth certificate (as the case may be).
• Documented Photo/ video proof with the said settled family member.

Set(M)

Applicable to immigrants living in the UK in any one of the above-mentioned categories.

Registration for family members of non-EU Immigrants in the UK

Non-EU immigrants can fill out a separate application form for each member of their family who wants to join them. The application can be sent on behalf of minors and children under 18 by their parent or guardian. If all of the requirements are met, each case will be judged on its own merits to see if it can be registered as a resident.

Applicants for a Tier 1 or Tier 2 visa can let their family join them in the UK if each permit for sponsoring a spouse or dependent children is checked and found to be valid.

Online applications can be sent in with a copy of the downloaded application form that has all of the required fields filled out with correct and checked information. Along with it, the applicant must include a copy of his or her passport, biometric information, and proof of all the information given.

Your application can be sent online. In 6 months, you will hear back about your application.

You can use the premium processing service if you would like to. You will be given a time when your application will be looked at in person, and on that day, you will find out what will happen.

Cost

It takes £2389 for an individual application by post. Application in person fees might be slightly higher and the advantages of this method is that a decision is declared on the same day avoiding the 6 months waiting.

Processing

It takes 6 months in general.

Citizens of the EU, the EEA, or Switzerland can no longer apply for a visa to live permanently in the UK. If a request is made before January 1, 2021, it will still be looked at, but it could take up to 6 months to get a decision.

After June 30, 2021, all EEA permanent residence cards that have already been issued will no longer be valid. These cards show that a person has the right to live permanently in the UK if they have used their Treaty rights in the UK for 5 years straight.

Until then, it can be used to apply for British citizenship and sponsor your partner’s visa application if they’re applying for a visa based on your residence.

Living in the UK after 30 June 2021

For those who were living in the UK by 31 December 2020, it is possible to apply to the EU Settlement Scheme and if ‘settled status’ is granted, you can apply for British citizenship at a later date. Applications close on 30 June 2021.

Family members

Your close family members (spouse or civil partner, child, grandchild, parent or grandparent) can also apply to the EU Settlement Scheme. Your ‘extended’ family members (unmarried partner, brother, sister, aunt, uncle, cousin, nephew or niece) can apply if they have a UK residence card. 

Applying for British citizenship

A PR document qualifies you to apply for British citizenship only after 1 year, provided you have lived in the UK at least 5 years just prior to the application.

However, if your husband, wife or civil partner is a British citizen, you can apply after living in the UK for 3 years

Conditions that apply in permanent residency

Your visa status expires if:

• You spend more than 2 years outside the country. The pre settled status becomes void and you will need to reapply for it in case you want continuous residence in the country once again.
• Any criminal offense is committed by the individual which would cancel the PR permit and could lead to deportation.

Permanent residency applications could be turned down if the applicant’s social media handles don’t pass the fairness test. Immigration officers are allowed to check the information that applicants give based on the information they get from their social media accounts.

Are you intending to get a Permanent Residence in UK or a residence permit?

Get your Permanent Residence in UK from Bangladesh with the help of  Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to Permanent Residence in UK. For queries or legal assistance, please reach us at:

E-mail: info@trfirm.com
Phone: +8801847220062 or +8801779127165 or +8801708080817

Address: House 410, Road 29, Mohakhali DOHS

How to open a buying house in Bangladesh

by Tahmidur Remura Wahid | Dec 6, 2022 | 2023, Law

The Bangladesh government has ordered that all garment and textile buying houses in Bangladesh must register with the textile department in order to conduct business. The textiles and jute ministry stated in a gazette notification on May 28, 2023 that registration is required within 60 days. If a buying house requests an extension for valid reasons, it may be granted an additional 60 days. The government will take legal action if registration is not completed on time.

On April 1, 2023 the ministry published a gazette notice outlining the registration process. Many buying houses operate unregulated in the country, and the government has no idea how many companies are involved, according to Bangladesh Garment Buying House Association president Kazi Iftequer Hossain, who spoke to a Dhaka-based English-language daily. According to the association, there are over 1,200 buying houses in the country, with approximately 400 of them being members. Ten buying houses have been registered since April 1st of this year.

In summary, there are three major steps that must be taken in order to establish a Buying House in Bangladesh, which are as follows:

• Establishing a Business in Bangladesh (i.e. Limited Company, Partnership or Proprietorship, Branch office or liaison office)
• Register with the Textile Department (DoT)
• Obtain the necessary licenses and memberships.

Step-by-step instructions for establishing a Buying House

What are the procedures for establishing a buying house in Bangladesh?

Step one: Applying for the Name clearance

To begin, a unique selected name must be approved by Joint Stock Companies and Firms before forming a private limited company (RJSC).

Time:

The certificate is usually delivered within 1 to 2 days.

Cost:

The government fee for Buying house name clearance is currently 230 BDT (3 USD including VAT).

Step 2: Create an MOU and an AOA.

A limited company’s Memorandum of Association (MOA) essentially includes the company’s objectives. You can include as many objectives as you want. The Articles of Association (AOA), on the other hand, are the company’s constitution. An AOA contains all of the rules for how a limited company will operate as well as the company’s Managing Director, Chairman, and so on.

Time for drafting:

We can draft the MOA and AOA within the same day, if we have all the necessary information. Fast and efficient client service is always the priority of Tahmidur Rahman Remura.

Step 3: Open a bank account (for foreign nationals or entities)

When it comes to opening a bank account, there will be a distinction between foreign nationals/entities and Bangladeshi nationals.

• Bank Account Documents Required:
• a photocopy of the certificate of name clearance
• AOA and MOA drafts
• Passport photocopy (application for foreign nationals)
• Following receipt of the aforementioned documents, the bank will open a provisional account in the company’s name.

Time:

In Bangladesh, opening a bank account takes one working day.

Step 4: Deposit your share money (for foreign nationals or entities)

Following the opening of the provisional bank account, a share money deposit will be sent from the foreign shareholder’s country to the provisional account. Following that, the bank will issue an encashment certificate.

Step 5: Registration in RJSC

Following receipt of the encashment certificate, a few documents, including the AOA, MOA, and encashment certificate, as well as all other necessary information, must be submitted to the RJSC. RJSC will generate an invoice to be paid to the recognized bank after receiving all necessary documents and information.

a). Documents needed:

• MOA and AOA
• Certificate of Encashment
• Name, parents’ names, passport number, email ID, and mobile number of directors
• Managing Director’s Name Chairman’s Name
• NID (if Bangladeshi national) (if Bangladeshi national)
• TIN (if Bangladeshi national) (if Bangladeshi national)
• Paid-up capital limit
• authorized capital limit
• All shareholders’ photos (1 copy)
• Signatories to the bank account’s address

b) Document filing fees to RJSC: The registration filing fee is BDT 1200 (one thousand and two hundred taka).

c) The government registration fee is determined by the company’s authorized capital. If the authorized capital is 50 lakh, the government fee is BDT 13570 (thirteen thousand five hundred and seventy takas) or USD 160 (one hundred and sixty takas) plus 15% VAT.

d) Incorporation certificate: After receiving all of the aforementioned documents, RJSC will verify all of the information contained in the AOA and MOA, as well as the encashment certificate, with the bank. After reviewing all of the information, the RJSC will issue an incorporation certificate in the company’s name. The formation of a limited company is complete at this point. However, in order to do business in Bangladesh, a few other requirements must be met.

Step 6: Obtain a Tax Identification Number (TIN) for Buying house in Bangladesh.

Following receipt of the incorporation certificate, you must apply to the National Board of Revenue (NRB) for a tax identification number. Following receipt of the application, a tax certificate in the name of the company will be issued.

Step 7: Obtain a business license for Buying house in Bangladesh.

To obtain a trade license, an application must be submitted to the relevant city corporation. This is necessary in order to conduct business in Bangladesh.
a). Documents:
Along with the application, the following documents must be submitted:
AOA and MOA photocopies
TIN Rental agreement Photo of the company’s managing director or chairman
The nature of the business
b). Time
A trade license usually takes 3–4 working days to obtain.

Step 8: Certificate of Value Added Tax (VAT)

To conduct normal business operations in Bangladesh following the formation of a private limited company, the company must have a unique Business Identification Number (BIN). Companies must therefore have a VAT registration certificate in order to obtain a Business Identification Number. The National Board of Revenue’s Customs, VAT, and Excise Department regulates VAT (NBR). It is free to apply for VAT registration.

a). Documents:

• TIN Import/Export License Certificate Certificate of Registration
• Photos in passport size
• Agreement Deed Bank Solvency Certificate
• Memorandum and Articles of Association for BOI Registration

Every private limited company is required to pay VAT on the 15th (fifteenth) of each month.
To learn how to open a branch office in Bangladesh, click here, and to learn how to open a liaison office, click here.

Register with the Textile Department (DoT).

All buyers’ houses in the country must be registered with the Textile Department. As a result, once a company is formed, it must register with the DoT. The following documents must be submitted to the DoT for registration:

a) Documents and information:

Registration letter to the Director General of the Department of Transportation:

• duly completed the registration form.
• a business license (copy attested)
• Certificate of Income Tax (attested copy)
• Certificate of Incorporation, Memorandum of Association, and AoA
• Annual revenue projections
• Membership certificate from a relevant commercial association (for example, BGBA or BGME) (attested copy)
• The registration fee is payable by bank draft.
• bank’s certificate of solvency

b) Registration fee:

The registration fee is BDT 20,000 (twenty thousand takas only) and must be deposited with the appropriate bank.

c) Form of application:

For your convenience, the application form for registration with the DoT is attached below.

d) Registration Process:

Temporary Registration Certificate: Once the primary and main documents are submitted to the DoT, the authority can issue a temporary registration certificate. However, the temporary certificate’s validity period will be 60 (sixty) days from the date of issue, after which it will expire automatically. As a result, all of the above-mentioned documents must be submitted within 60 (sixty) days. It should be noted that a temporary registration certificate will only be issued once to a purchasing house.

Registration certificate:

Once all of the above-mentioned documents are submitted to the authority within 60 days of the temporary registration certificate’s issuance, the documents will be inspected. Following that, the authority will issue the registration certificate within 60 (sixty) days of receiving all of the documents.

e). Certificate validity:

The registration certificate is good for three years.

f) Registration certificate renewal:

It should be noted that you must apply for registration certificate renewal at least 60 (sixty) days before its expiration date. To apply for renewal, submit an application in the appropriate form along with the required documents to the Director General of the DoT.

The following documents must be submitted for renewal:

• a business license (copy attested)
• Certificate of Income Tax (attested copy)
• Certificate of membership in a relevant commercial association (e.g., BGBA or BGME) (attested copy)
• Export data from the previous year
• For the renewal fee, a bank draft pay order is required.
• Following inspection of the aforementioned documents, the authority will issue a new registration certificate within 30 (thirty) days of receipt. This will be valid for another three years.

g) Renewal Fee

The government fee for renewing a registration certificate is BDT 5,000 (five thousand takas only), which must be deposited at the appropriate bank.

Licenses Required

The following licenses are required :

• Certificate of Export Registration (ERC)
• Certificate of Registration for Import (IRC)
• Chamber of Commerce membership
• BGMEA membership

Process of Running a buying house in Bangladesh:

Are you planning to register a private limited company in Bangladesh?

Company formation and registration at Tahmidur Rahman Remura: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, TRW Law Firm in Bangladesh: The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to forming and registering a Private Limited Company in Bangladesh . For queries or legal assistance, please reach us at:

E-mail: info@trfirm.com
Phone: +8801847220062 or +8801779127165

Address: House 410, Road 29, Mohakhali DOHS

VAT registration and enlistment in Bangladesh

by Tahmidur Remura Wahid | Nov 26, 2022 | 2023, Law

VAT registration and enlistment in Bangladesh

Every company in the country must have a unique Business Identification Number (BIN). A business must first obtain a VAT registration certificate before applying for a BIN.

The annual turnover of a business determines whether it is required to pay VAT. If a company’s annual turnover is less than 30 lakhs taka, it is not required to pay VAT; however, if the company’s annual turnover is between 30 lakhs 1 taka and 80 lakhs taka, it is required to pay 3% Turnover Tax. All other businesses with an annual turnover of more than 80 lakhs must pay VAT at the 15% rate.

To continue your normal business operations, such as tendering, banking, and export and import, you must apply for VAT registration and obtain a Business Identification Number (BIN).

Obtaining VAT Registration

Applying for VAT registration is free, but you must meet certain requirements to be eligible. To support your application, you must provide the necessary information. This will also help to reduce any potential delays in processing your request.

BIN Eligibility

A BIN is not available to everyone. Although anyone can apply for free, only those who are eligible will receive and keep a BIN.

What you will require for your BIN application

Certain information is required to complete your free BIN application.

Request a BIN

To obtain a BIN, you must be running a business.

Following the application for BIN

If your BIN application is approved, your information is saved in the IVAS (Integrated VAT Administration System) at NBR. If your application is denied, you still have options.

How does the VAT procedure function?−

The VAT procedure functions through accepting input tax credit at every level of supply.  The tax payer, in accordance with the law and relevant rules and through maintaining accounts during every tax period, accepts paid up VAT on purchased input or goods. The VAT chain is maintained through accepting credit at every level of supply and paying Value Added Tax on all value additions.

How is VAT levied?

VAT is levied on taxable imports and supplies. VAT will be levied at a rate of 15% on all imports and supplies, except for goods and services exempt from VAT under the provisions of the law’s First Schedule.

Who is responsible for VAT?

The VAT procedure is an automatic taxing procedure based on input tax credit against supply or sale. The supplier accepts the paid-up VAT on the purchase tax of the goods or service as credit against the VAT included in the price during the supply of such goods or service, and he pays the net amount of VAT. As a result, the seller realizes the VAT from the buyer’s price and deposits the net amount of VAT to the government treasury after taking credit for VAT at the purchase level.

Because VAT is a consumer tax, the consumer must pay the full amount of VAT that applies to goods or services. As an intermediary procedure, at all levels of sale, the producer, supplier, and all shall realize VAT on behalf of the government and deposit it in the government treasury.

When was VAT implemented in Bangladesh?

Bangladesh implemented the Value Added Tax on July 1, 1991. The new VAT legislation will go into effect on July 1, 2017.

Who is the VAT payer?

In the Value Added Tax procedure, the VAT payer is the final consumer of goods or services. At each level of sale, the supplier or seller collects VAT from the purchaser and deposits it in the government treasury. Because the consumer is the last among purchasers, the ultimate liability for VAT falls to the consumer. Only at the point of sale does the supplier or seller deposit the VAT realized to the government treasury.

What are the most recent VAT rates under VAT Procedure 1991?

The standard rate of VAT under the VAT Procedure 1991 is 15%. According to the budget for the previous fiscal year (2015-16), in addition to the standard rate, ten lower rates are in place in the case of some services, namely 1.5%, 2%, 2.5%, 4%, 5%, 5.5%, 6%, 7.5%, 9%, and 10%.

What is the registration threshold for VAT and Turnover Tax?

Under the new VAT procedure, the registration threshold is Taka 8 million, and the enlistment threshold is Taka 3 million.

How will I persuade my business that VAT will be applicable?

If any of the goods or services listed in the First Schedule of the law fall within the scope of your economic activities, no VAT obligation will arise in your business, according to the law.

Furthermore, the annual turnover of your company will determine the applicability of VAT in the business. (See also Question 2.2.) However, you can pay VAT after VAT registration regardless of your business’s annual turnover.

What exactly is tax under the new VAT law?

The new VAT law defines tax as VAT, turnover tax, and supplementary duty, as well as interest, fine, and pecuniary penalty to recover arrears.

What is a VAT consumer’s responsibility?

It is the consumer’s responsibility to take delivery of the purchase invoice from the seller at the time of purchase. Because taking proper delivery of the VAT invoice ensures proper deposit of the VAT included in this invoice to the Government treasury.

What can a buyer do if the seller refuses to issue a VAT invoice?

While it is the seller’s responsibility to issue VAT invoices, it is also the purchaser’s responsibility to properly take delivery of the VAT invoice. If the seller refuses to issue a VAT invoice for any reason, he will notify the seller of this responsibility, because proper delivery of the VAT invoice will ensure proper deposit of the VAT included in the invoice to the Government treasury.

Even if the seller does not wish to issue the VAT invoice, he may bring the matter to the attention of the VAT authority, either online or by informing the nearest VAT authority.

What exactly is registration or enlistment?

Any importer, exporter, or taxable supplier must participate in the VAT procedure under the Value Added Tax procedure. This involvement with the VAT procedure occurs through registration or enlistment. He must comply with the VAT law by obtaining a Business Identification Number in the manner prescribed by the VAT law. And, according to VAT law, obtaining a Business Identification Number in the prescribed manner is referred to as registration or enlistment.

When must I take Registration or Enlistment?

When the turnover of economic activities exceeds Taka 8 million in a 12 (twelve) month period, registration is required, and enlistment is required when the turnover of economic activities exceeds Taka 3 million in a 12 (twelve) month period. You must register or enlist within 15 (fifteen) days of becoming eligible for registration or enlistment. Registration or enlistment will take effect on the first of the month following.

What is the meaning of a Business Identification Number (BIN)?

A business identification number is a number assigned to an individual based on the value of his economic activities. The nature and activities of the individual’s economic activities cannot be determined by this identification number. A tax payer can be identified by a specific number of 9 digits. This number can be obtained from the NBR’s website to determine a tax payer’s state of business affairs.

How do I obtain a BIN?

If the annual turnover of my economic activities exceeds the prescribed limit, an application in Form- VAT 2.1 must be submitted to the Commissioner. Within three working days of proper scrutiny and examination, a Registration Certificate/ Turnover Tax Enlistment Certificate in Form- VAT 2.1 containing a BIN from the VAT system will be issued in my favor.

What exactly is a VAT Certificate of Honour?

VAT Certificate of Honour is a letter of recognition issued by the VAT Online System to a tax payer in VAT Form-18.5 after he submits VAT or Turnover Tax returns for all Tax Periods during the relevant one year.

What are the benefits of a Certificate of Honour?

Any individual may benefit from the following benefits by obtaining a Certificate of Honour under VAT law, for example:

• Import Registration Certificate and Export Registration Certificate Renewal
• Providing to a Withholding Entity
• Taking part in any tender.
• Enrolling in any organization.
• Bond Licence Renewal
• Bank loan sanction/renewal
• Registration of real estate, etc.
• Furthermore, under the Taxpayer Motivation Programme, various social benefits, such as- Discounts in various hospitals, hotels, restaurants, super markets, branded stores, air tickets, and so on; and Priority in having various services, etc.

How should I calculate Annual Turnover in my business?

You will calculate annual Turnover in your business by adding the total amount of money received from goods manufactured at, imported to, or purchased by your business concern during the previous 12 (twelve) months.

Method of calculating annual business turnover in the event of registration:

In the case of a business, calculate turnover over the last 12 months beginning on the last day of the previous month (tax period).
Assuming that January 2017 is the current month, turnover should be calculated from 31 December 2016, the last day of the preceding month, for a period of the last 12 months, i.e., from 1 January 2016 to 31 December 2016.

In the case of a new business:

(a) estimating net turnover for the next 12 months beginning on the first day of the preceding month based on actual turnover (tax period).
That is, in order to register my entirely new business, I will compute the net turnover for the next 12 months beginning on the first day of the previous month.

Assume you are going to start a new business in the month of January 2017. At this point, calculating from the first day of the preceding month, 1 December 2016, turnover should be determined for the next 12 months, i.e., from 1 December 2016 to 30 November 2017.

(b) on the basis of estimated turnover, if the person liable to be registered expects to cross the registration threshold, estimating net turnover for the next 12 months beginning on the first day of the month (tax period) in which he will examine the probability of his registration, he must obtain VAT registration.

What are the advantages of having a BIN?

A businessman’s legal validity of business is established through the BIN. You can avail the following advantages:

• All import- export activities except baggage import.
• Registration of land or building in the name of the person registered or enlisted.
  Obtaining Import Registration Certificate or Export Registration Certificate.
  Supplying to any Withholding Entity.
• Participating in any tender.
• Enlisting with any organization.
• Obtaining Bond Licence.
• Sanction of Bank loan in favour of a registered or enlisted person.
  
  

Where to submit application for registration or enlistment?−

Application for registration or enlistment shall have to be submitted at the following places:

• Web Portal of Online Board.
• Central Information Processing Centre run by the Board.
• Any Customs, Excise and VAT Commissionerate or Departmental Office, which may be
  convenient for the applicant.
• Any service centre specified by the Board or the concerned Commissioner.
• Any fair conducted by the Board or the concerned Commissioner.
• Any other place ordered by the Board or the concerned Commissioner.

What are the Forms concerned with Registration or Enlistment?−

The Forms concerned with Registration or Enlistment are as follows:

How do I get registered or enrolled?

You must apply to the concerned commissioner for registration or enlistment using form VAT 2.1 for registration or enlistment.

Following verification of documents and information, the commissioner shall enlist or register you within 3 (three) working days and issue you a Business Identification Number in accordance with VAT 2.3. The registration certificate can be obtained online or in hard copy from the VAT Online help center.

My company has several branches. I’ve been running a business and should I be obtaining separate BINs for each of the branches?

According to Section 5 of the Value Added Tax and Supplementary Duty Act of 2012, there is no need for separate registration for each branch of the same company; business operations can be managed with a single registration.

Is it possible for the Commissioner to register or enlist me on his own?

If the Commissioner determines that you are eligible for registration after proper verification, he may register or enlist you on his own.

Is it necessary to obtain registration or enlistment for economic activities that are exempt under the purview of…

Exempted economic activities do not necessitate registration or enlistment.

Can I obtain voluntary registration even if I operate a business in an exempted economic zone?

You certainly can.

How can I change the information I gave during registration or enlistment?

If you want to change any of the information provided during registration or enlistment, you can do so yourself, but the Commissioner must be notified online via the VAT-2.6 Form within 15 (fifteen) days of the change.

How do I move the address of my business from one location to another?

You can change the location of your business by submitting an application to the Commissioner in VAT-2.7 Form 15 (fifteen) days before the transfer, subject to justification.

What documents are required for registration or enlistment?

There will be no documents required to be submitted during registration or enlistment. VAT registration or enlistment applications must be submitted in VAT-2.1 Form.

Is registration possible in any residential area?

The VAT law imposes no geographical restrictions on registration. Under the new procedure, no Trade Licence or similar document is required for registration. Postal Codes will be used to determine registration. As a result, registration can be obtained from any location in Bangladesh.

Is it possible to switch from Enlistment to Registration or from Registration to Enlistment?

You certainly can. You can change from Enlistment to Registration based on the Annual Turnover threshold, i.e. if the enlisted Annual Turnover threshold exceeds Taka 8 million. You can also switch from Registration to Enlistment if the registered business’s annual turnover exceeds Taka 3 million but is less than Taka 8 million.

How do I cancel my Registration or Enlistment?

In the event that your business’s registration or enlistment is revoked, you may apply to the Commissioner using the VAT-2.4 Form. If the Commissioner considers reasonable, causes for revocation of registration after suspending registration or enlistment for the time being, he shall direct the provision of a final return within 15(fifteen) days. The Commissioner shall revoke registration or enlistment within 15 (fifteen) days of receiving the final return, subject to proper receipt of information.

What are the differences between provisions in the old and the new law in respect of VAT registration and enlistment in Bangladesh?

The differences between provisions in the old and the new law in respect of registration and enlistment are as follows:

What is the method of online application for VAT registration and enlistment?

You can apply for online registration in accordance with the following methods:

Step-1:  At first visit www.nbr.gov.bd . Select Online VAT Registration option. You reach VAT Online Portal.

Step-2:  Create first, User ID and Password there in the name of the individual liable to be registered or enlisted.

Step-3:   Enter into the VAT Online System using the User ID and Password and after selecting Registration option, submit VAT- 2.1 Form, duly filled in. 

Step-4:  If the submission is correct, VAT Registration Certificate or Turnover Tax Enlistment Certificate will be created. You will get that from the System. That will also be sent to your email.

NB:  Before furnishing any online application, please go through the relevant practical guide from the website of the NBR. Moreover, you can train yourself from www.nbrelearning.gov.bd in order to learn more in details including watching relevant video films.

Are you intending to do your corporate/personal taxes in Bangladesh (Tax rate in Bangladesh)?

Get your tax and vat sorted out (a/c current Tax rate in Bangladesh) with the help of  Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related in doing taxes as per the current Tax rate in Bangladesh. For queries or legal assistance, please reach us at:

E-mail: info@trfirm.com
Phone: +8801847220062 or +8801779127165

Address: House 410, Road 29, Mohakhali DOHS

VAT agent in Bangladesh

by Tahmidur Remura Wahid | Nov 26, 2022 | 2023, Law

When and why is a VAT agent required in Bangladesh?

A non-resident entity that conducts business in Bangladesh but does not have a fixed place of business must appoint a VAT Agent in Bangladesh, according to the Value Added Tax and Supplementary Duty Act, 2012, and the Value Added Tax and Supplementary Duty Rules, 2016, which take effect on July 1, 2017. The VAT Agent will be the person authorized to act on the Business entity’s behalf.

The VAT agent will be the person authorized to represent the non-resident to the VAT authorities.

How Will A VAT Agent Work in Bangladesh?

On behalf of the non-resident, the VAT Agent must obtain a VAT Agent certificate, which is typically valid for three years. The certificate can be renewed using an application before it expires.

After nominating a VAT agent, the non-resident must notify the National Board of Revenue, and the National Board of Revenue must contact the VAT agent to obtain his consent.

Such VAT Agent of a non-resident shall bear all responsibilities and carry out all activities of the non-resident, and shall be jointly and severally liable for the payment of all dues, including taxes, fines, penalties, and interest.

Nonetheless, a VAT Agent must register economic activities for VAT in the name of the principal.

VAT Agent in Bangladesh

Tahmidur Rahman Remura Wahid Associates law Firm is a group of professionals that includes Chartered Accountants registered with the Institute of Chartered Accountants of Bangladesh, Cost and Management Accountants registered with the Institute of Cost and Management Accountants of Bangladesh, and lawyers registered with the Bangladesh Bar Council.

Our professionals are qualified to act as VAT agents for non-resident entities in Bangladesh, and they have the necessary experience dealing with VAT authorities regarding VAT return submission, obtaining VAT exemption, input/output tax credit, VAT Audit, and VAT registration.

What exactly is VAT?

VAT, or Value Added Tax, is an indirect tax paid by the consumer through a registered person. VAT on a specific good or service is calculated by adding the actual level of value of the said good or service and adjusting the input tax payable against the supplied goods or service.

If a good is purchased for Taka 1000 and sold for Taka 1500, an amount of Taka 130.43 is included as VAT for the purchase of Taka 1000 (Calculation: 1000×15/115); similarly, a VAT amount of Taka 195.65 is included if the good is sold for Taka 1500. (Do the math: 1500×15/115.)

Actual addition will be Taka 500 if the goods is sold at Taka 1500 and as the seller had paid the price of the goods during purchase inclusive of the VAT, he will pay the VAT at the actual level of addition at the stage of sale, that is on Taka 500, taking back the VAT paid by him at the stage of purchase.
Payable VAT on Taka 1500- Taka 195.65
VAT included in Taka 1000- Taka 130.43

Net payable VAT on Taka 500- Taka 65.22 (Calculation: 500×15/115)
Method of calculation by seller- = (1500×15/115) – (1000×15/115)
=195.65-130.43
=65.22 Taka

How does the VAT procedure function?−

The VAT procedure functions through accepting input tax credit at every level of supply.  The tax payer, in accordance with the law and relevant rules and through maintaining accounts during every tax period, accepts paid up VAT on purchased input or goods. The VAT chain is maintained through accepting credit at every level of supply and paying Value Added Tax on all value additions.

What are the Forms concerned with Registration or Enlistment?−

The Forms concerned with Registration or Enlistment are as follows:

What are the differences between provisions in the old and the new law in respect of The Value Added Tax and Supplementary Duty Act 2012 and The Value Added Tax Act 1991?

The differences between provisions in the old and the new law in respect of registration and enlistment are as follows:

What is the online application procedure?

You can apply for online registration using the following methods:

Step 1: Go to www.nbr.gov.bd .

Select the option for Online VAT Registration. You have arrived at the VAT Online Portal.

Step 2: First, create a User ID and Password in the name of the person who will be registered or enlisted.

Step 3: Log in to the VAT Online System with your User ID and Password and, after selecting the Registration option, submit the completed VAT-2.1 Form.

Step 4: If the submission is valid, a VAT Registration Certificate or Turnover Tax Enlistment Certificate will be issued. That will be provided by the System. This will also be sent to your email address.

NB: Before submitting any online application, please read the relevant practical guide from the NBR’s website. Furthermore, you can train yourself from www.nbrelearning.gov.bd to learn more in depth, including by watching relevant video films.

Are you intending to do your corporate/personal taxes in Bangladesh (Tax rate in Bangladesh)?

Get your tax and vat sorted out (a/c current Tax rate in Bangladesh) with the help of  Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related in doing taxes as per the current Tax rate in Bangladesh. For queries or legal assistance, please reach us at:

E-mail: info@trfirm.com
Phone: +8801847220062 or +8801779127165

Address: House 410, Road 29, Mohakhali DOHS