Time and method of payment of VAT (Section 6):

The provisions with regard to time and method of payment of VAT are as under: a) In case of imported goods, the method of payment of VAT will be the same as customs duty as per Customs Act. b) In the case of goods manufactured, produced, imported, purchased, or procured or collected in any manner by a registered person or by a person qualified for registration, VAT would be payable (on the taxable goods) at the time of the following which occurs first:

• When goods are delivered or supplied; • When Chillan relating to the goods to be delivered or supplied is issued; • When goods are taken for personal use or for use of others; and • When payment is received in full or in part

c) In case of service rendered by registered person or by a person qualified for registration, VAT would be payable (on the taxable services) at the time of the following, which occurs first:

• When the service is provided; • When the invoice relating to the service is provided; and • When payment is received in full or in part.

Imposition of value added tax (VAT) – Section 3

1) The value added tax is chargeable and payable at the rate of 15% on the value mentioned in section 5, on all goods imported into Bangladesh, except the goods mentioned in the First Schedule of the Act and on the supply of all goods not listed in the said Schedule and on all services rendered in Bangladesh, except services specified in the Second Schedule of the Act.

(2)Notwithstanding anything contained in sub-section (1), zero rated tax would be imposed on the following goods or services:

a. Any goods or services exported or deemed to have been exported from Bangladesh;

b. Food and other provision supplied to any transport leaving Bangladesh