As per the 3rd schedule VAT rates are:

      1. For Traders @ 5%

      2. For the supply of medicine @ 2.4%

      3. For the supply of Diesel, Kerosene, Octane, Petrol, Furnace oil & LP gas @ 2%

In Bangladesh, the submission of Withholding VAT Return is a legal requirement under the Value Added Tax and Supplementary Duty Act, 2012 (Section-64) for certain entities that deduct VAT at source when making payments.

Who Needs to Submit Withholding VAT Return?

     1. Government Entities

     2. Autonomous Bodies

     3. Banks

     4. Insurance Companies

     5. NGOs

     6. Any organization registered as a withholding entity by the National Board of Revenue (NBR).

       These entities are legally required to deduct VAT at source (generally 2% to 15%, depending 

        on the service) and submit it to the government.

Due Date for Withholding VAT Return Submission

VAT returns must be submitted within 15th of the following month / days after the end of each tax month. Penalty for Late Submission: BDT 5,000 or more, depending on the delay and nature of non-compliance. 

Example: VAT withheld in August must be reported and deposited by 15th September.

How to Submit Withholding VAT Return?

Submission is done through the Online VAT (Mushak-9.1) System (VATS) at: https://vat.gov.bd