What is Input tax rebate?
Input tax rebate is the VAT you paid on purchases, set against the VAT you charged on sales, so that only the value you added is taxed. The difference is what you pay in the monthly return.
Input tax rebate is the VAT you paid on purchases, set against the VAT you charged on sales, so that only the value you added is taxed. The difference is what you pay in the monthly return.
In Bangladesh
The rebate is only as good as the paperwork behind it. It has to be supported by a Mushak 6.3 from a registered supplier and appear in your Mushak 6.1 purchase register, which is why buying from unregistered suppliers quietly costs more than the invoice says.
An example
A wholesaler buys stock for BDT 100,000 plus BDT 15,000 VAT and sells it for BDT 130,000 plus BDT 19,500 VAT. The output tax is BDT 19,500, the rebate is BDT 15,000, and BDT 4,500 is paid with the return.
In SORS ERP
Purchases recorded in SORS ERP write a 6.1 register entry with the supplier BIN and the VAT paid, so the rebate figure in the return summary reconciles to the register rather than being estimated.
Also called
- In Bangla
- উপকরণ কর রেয়াত
- Also
- Input VAT credit
- Also
- rebate
Questions
Answered plainly, including where the answer is no.
Can I claim rebate on everything I buy?
No. The rebate is available on inputs used for taxable supplies, supported by a tax invoice from a registered supplier and recorded in your purchase register. Purchases from unregistered suppliers, and inputs used for exempt supplies, generally do not qualify.
See SORS ERP running on your own numbers
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