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A non-resident entity that carries out business in Bangladesh without a fixed place of business is required to appoint a VAT agent. FM Consulting International acts in this capacity, assuming the operational and compliance responsibilities of VAT on behalf of overseas principals under the Value Added Tax and Supplementary Duty Act, 2012.
Where a non-resident business operates in Bangladesh but maintains no fixed place of business, the law requires it to nominate a VAT agent to represent it locally. The agent takes on all operational duties on behalf of the principal and is jointly and severally liable for the payment of all dues, including taxes, fines, penalties and interest. Importantly, VAT registration is effected in the name of the principal rather than the agent.
A VAT agent obtains a certificate that is valid for three years and renewable on application before it expires. The non-resident principal must notify the National Board of Revenue (NBR) of the nomination, after which the NBR contacts the agent to confirm consent to act.
VAT agent obligations are governed by the Value Added Tax and Supplementary Duty Act, 2012 and the Value Added Tax and Supplementary Duty Rules, 2016, which took effect on 1 July 2017. The National Board of Revenue is the regulatory authority overseeing the regime.
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