Skip to Content

Archived discussions are read-only. Learn more about SAP Q&A

Bangladesh VAT

Dear Gurus,

I have a VAT requirement in Bangladesh for an FMCG company.

In this company the following setup exists:

  • 2 Manufacturing Plants (which has its own VAT registration No.)

  • Central Sales Depot (which has its own VAT registration No.), this CSD is a virtual location which is allowed to be setup by the Bangladesh government for simplicity of tax reporting.

  • 7 Sales Depot (physical distribution centres)

From tax point of view, company needs to declare manufacturing price for a FG at manufacturing plant level, also company needs to declare another list price for an FG at Central Sales Depot. Since there are 7 different sales depot, and for a particular FG list price is same for all, government allows Company to setup a virtual location (Central Sales Depot).

In this company, the following goods movement scenarios are VAT applicable:

  • Every goods receipt from Vendor is accompanied by a VAT challan (tax invoice) which needs to be entered into the system.

  • Goods sent from Manufacturing Plant to Central Sales Depot. At this stage, supplementary duty is also applicable at 15%.

  • Goods sent from Central Sales Depot to Sales Depot.

  • In the case of subcrontacting with 3rd Party Supplier and physical goods is shipped directly to Sales Depot, the following legal VAT flow is applicable:

  • 3rd Party Supplier to Manufacturing Plant

  • Manufacturing Plant to Central Sales Depot

  • Central Sales Depot to Sales Depot

I understand there is no Bangladesh localization for this kind of requirement, hence could you please advise me on a suitable solution for this requirement?

Also, in India localization (CIN), I understand that it is possible to have VAT applicable for a goods movement, in this case is it a viable solution?

Former Member
Not what you were looking for? View more on this topic or Ask a question