NBR: VAT must be in price tag
Consumers cannot be charged value added tax (VAT) at checkout anymore. The VAT included price needs to be written on the product from now on.
The VAT department of the National Board of Revenue (NBR) has recently issued an order in this regard to help the customers know just how much they are paying for a product or service.
According to NBR sources, the price of the product, VAT and supplementary duty (if applicable) should be written separately on the product from now on.
The order states that the receipt needs to contain details of goods or services, quantity and VAT and supplementary duty. The price should also be displayed in Bangladeshi currency.
For example, the food menu in most restaurants and fast-food shops does not list the prices with VAT included. In most cases, VAT is written on the menu individually.
If the price of a food item is Tk100, a 10% VAT is written additionally, meaning the consumer pays Tk110 for the item.
According to the new instruction of NBR, the price shown on the menu will include the VAT, so that the customer understands how much they are paying. In this case, the menu will show Tk110.
Meals include 10% VAT in AC restaurants or fast-food shops and 7% VAT in non-AC restaurants.
A 7.5% VAT on clothes is applicable for big showrooms while 5% VAT is added for online shopping.
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