The Value Added Tax and Supplementary Duty Act, 2012

1 The Value Added Tax and Supplementary duty Act, 2012 [Act No. 47 of 2012 ] (Unofficial English Translation) An Act to expand the areas of imposing Value Added tax, Supplementary duty and turnover tax; and to consolidate and simplify the provisions relating to collection procedures thereof; and to make other provisions ancillary thereto. WHEREAS it is expedient and necessary to expand the areas of imposing Value Added tax, Supplementary duty and turnover tax; and to consolidate and simplify the provisions relating to collection procedures thereof; and to make other provisions ancillary thereto; It is hereby enacted as follows: CHAPTER ONE PRELIMINARY 1.

2 Short title and commencement. (1) This Act may be called the Value Added Tax and Supplementary duty Act, 2012 . (2) The Chapter Two, Chapter Twelve and Chapter Fifteen, and sections 128, 132, 134, and 135 of this Act shall come into force at once. (3) Save and except the Chapters and Sections mentioned in sub-section (2), the other Chapters and Sections of this Act shall come into force on such date as the Government may, by notification in the official Gazette, appoint. 2.

3 Definitions. In this Act, unless there is anything repugnant in the subject or context, (1) "non-resident" means a person who is not a resident; (2) "offence" means any offence specified in sections 111, 112 and 113; (3) "exempted supply" means any supply specified in section 26; (4) "exempted import" means any import specified in section 26; (5) "money" means any existing legal tender of Bangladesh or of any other country, and also includes the following instruments, namely (a) negotiable instrument.

4 (b) bill of exchange, promissory note, bank draft, postal order, money order or any other similar instrument; (c) credit card or debit card; or (d) any supply made through account credit or debit; Page 1 10/21/2013 (6) "economic activity" means any activity carried on regularly or continuously for making supply of any good, services or immovable property, and (a) also includes the following activities, namely- (i) any business, profession, vocation, means of earning livelihood, manufacture or undertaking of any kind, whether or not for profit.

5 (ii) Supply of any good, service or property made under any lease, licence, or a similar arrangement, (iii) any one-off initiative in the nature of a commercial activity or enterprise; or (iv) any activity carried out at the beginning or at the end of such an activity; but (b) shall not include the following activities, namely- (i) any service rendered by an employee to his employer; (ii) any service rendered by any director of a company: provided that the services rendered by a director, who holds the office of the directorship for the purposes of the business of the company, shall be regarded as an economic activity; (iii ) any recreational pursuit or hobby carried on a non-commercial basis; or (iv) any prescribed activity carried on by the Government without any commercial motive.

6 (7) "partnership" means the partnership as defined in section 4 of the Partnership Act, 1932 (Act No. IX of 1932); (8) "advance tax" means any tax payable in advance under section 31(2) on a taxable import; (9) "order" means any order, general or special, issued by the Board or by any authorised VAT official; (10) "progressive or periodic supply" means- (a) any supply for which the consideration is paid progressively or periodically under the terms of an agreement; (b) any supply made under the terms of any lease (including finance lease), hire of licence.

7 Or (c) any supply made directly for any construction or engineering activity or for restructuring or extension of any building; (11) "ancillary transport services" means any stevedoring services, lashing and securing services, cargo inspection services, services relating to preparation and processing of customs documentation, container handling services, and services relating to the storage and safe-keeping of transported goods or goods to be transported and any other similar service.

8 Page 2 10/21/2013 (12) "international transport" means, except the ancillary transport services, any of the flowing services of transportation of any passenger or good by road, water or air from one place to another, namely- (a) from a place outside Bangladesh to another place outside Bangladesh; (b) from a place outside Bangladesh to a place within Bangladesh; or (c) from a place within Bangladesh to a place outside Bangladesh; (13) "international assistance and loan agreement" means an agreement between the Government of Bangladesh and a foreign Government, or an international organisation for rendering assistance to Bangladesh in the areas of finance, technology or administration; (14) "appellate tribunal" means the Customs, Excise, and Value Added Tax Appellate Tribunal constituted under section 196 of the Customs Act; (15) "resident" means an individual who- (a) normally lives in Bangladesh.

9 Or (b) stays in Bangladesh for more than 182 (one hundred and eighty-two) days in a current calendar year; or (c) stays in Bangladesh for more than 90 (ninety) days in a calendar year and stayed in Bangladesh for more than 365 (three hundred and sixty-five) days during the four immediately preceding calendar years; and also includes the following entity, namely (i) a company, if it is incorporated under the prevalent laws of Bangladesh or its centre of control and management is in Bangladesh; (ii) a Trust , if a Trustee thereof is a resident of Bangladesh or the centre of control and management of the Trust is in Bangladesh; (iii) an association of persons other than a Trust , if it is formed in Bangladesh or its centre of control and management is in Bangladesh; (iv) all government entities.

10 Or (v) a property development joint venture; (16) "import" means bringing in any good from outside to within the geographical boundary of Bangladesh; (17) "imported service" means supply of any service made from outside Bangladesh to a person registered or required to be registered; (18) "electronic service" means the following services, when provided or delivered on or through a telecommunications network, a local or global information network, or similar means, namely (a) websites, web-hosting, or remote maintenance of programmes and equipment; (b) software and the updating thereof delivered remotely; Page 3 10/21/2013 (c) images, texts, and information delivered; (d) access to databases; (e) self-education packages; (f) music, films, and games.