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?