VAT & AIT per NBR Regulations

1. Statutory framework

Softsasi Systems issues invoices in compliance with the Value Added Tax and Supplementary Duty Act, 2012 and the Income Tax Act, 2023, as amended by the Finance Act in force at the time of invoicing. The applicable rates are those notified by the NBR (https://nbr.gov.bd/) on the invoice date.

2. VAT (মূসক) on services

Software, ERP licensing, AMC, training and API services are generally charged at the standard 15% VAT rate. Where a reduced or truncated rate applies under SRO notifications (for example IT-enabled services), the lower statutory rate is used and the relevant SRO reference is printed on the invoice. VAT is added to the catalog price and shown as a separate line item.

3. AIT (অগ্রিম আয়কর) deduction at source

Under section 89 of the Income Tax Act 2023 (and the AIT/TDS rules), the client (deducting authority) is required to withhold Advance Income Tax — typically 10% for resident service suppliers — from each payment and deposit it against Softsasi's TIN. A signed AIT/TDS certificate (challan) must be issued to Softsasi within the period prescribed by the NBR.

4. Mushak 6.3 tax invoice & documentation

Every taxable supply is documented on a Mushak 6.3 tax invoice carrying our BIN, TIN, HS/Service code, item description, VAT rate and VAT amount. Clients must retain the original Mushak 6.3, AIT challan and proof of payment for the period required by the NBR for input-tax credit or audit purposes.

5. Cross-border, SEZ and exempt clients

Export of services, supplies to bonded warehouses, Economic Zones (BEZA/BEPZA) and other entities entitled to VAT exemption are billed at the applicable zero or exempt rate against a valid exemption certificate. The client is responsible for furnishing the certificate before invoicing; otherwise the standard rate applies.

6. Disputes and amendments

If statutory rates change after a quote is issued but before invoicing, the invoice is adjusted to reflect the rate in force on the invoice date. Any tax dispute should be raised in writing within 30 days of invoice. Refunds, if any, follow NBR refund procedures.

Reference: National Board of Revenue (NBR), Government of Bangladesh — https://nbr.gov.bd/

For tax documentation queries, contact support@softsasi.com.