What is Zero rated supply?
A zero rated supply is taxable but at a rate of nil. Because it is still a taxable supply, input tax rebate on the purchases behind it is generally available, which is the practical difference from an exempt supply.
A zero rated supply is taxable but at a rate of nil. Because it is still a taxable supply, input tax rebate on the purchases behind it is generally available, which is the practical difference from an exempt supply.
In Bangladesh
Exports are the common case. For an exporter the distinction matters in cash terms: zero rating with rebate returns the VAT paid on inputs, while exemption would leave it as a cost.
An example
A knitwear exporter in Narayanganj pays VAT on yarn and accessories and charges nil on the export. Because the export is zero rated rather than exempt, the input tax on those purchases is generally recoverable rather than lost.
In SORS ERP
Zero rated supplies are configured through the same tax structures as any other rate and are identifiable in the sales register, so the return summary separates them from standard rated sales.
Also called
- In Bangla
- শূন্যহার সরবরাহ
Questions
Answered plainly, including where the answer is no.
Are all exports zero rated?
Exports are the common case for zero rating, but the treatment depends on the supply and the conditions in the rules. Confirm your specific position with your VAT consultant rather than assuming.
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