What is Turnover tax?
Turnover tax is a simplified alternative to standard VAT for smaller businesses, charged on turnover at a lower rate instead of the standard rate with rebate. A business on turnover tax does not claim input tax rebate.
Turnover tax is a simplified alternative to standard VAT for smaller businesses, charged on turnover at a lower rate instead of the standard rate with rebate. A business on turnover tax does not claim input tax rebate.
In Bangladesh
The choice between turnover tax and standard VAT registration turns on your annual turnover and where the thresholds currently sit. Thresholds are revised, so the decision is worth revisiting with a consultant rather than settling once.
An example
A small trader with turnover below the standard VAT threshold registers for turnover tax instead. They charge the lower turnover tax rate, do not claim input rebate on purchases, and file the turnover tax return rather than the standard 9.1.
In SORS ERP
SORS ERP prepares turnover tax return summaries alongside the standard VAT return summary, so a business on either footing works from figures produced by the same books.
Also called
- In Bangla
- টার্নওভার কর
Questions
Answered plainly, including where the answer is no.
Can I switch from turnover tax to standard VAT?
Businesses move between the two as turnover changes, and the thresholds are revised from time to time. It is a registration decision to take with your VAT consultant rather than something you change in your software.
See SORS ERP running on your own numbers
A 30-minute demo in Bangla or English, with your products, your VAT setup and your questions.