No VAT for the exporters on transfer of capital machinery and spare parts

Export-oriented companies in Bangladesh can now transfer capital machinery and spare parts without paying the 5% VAT, provided they meet three conditions. According to a new General Order (GO) from the VAT wing of the National Board of Revenue, both companies involved in the transfer must hold valid bond licenses.

Additionally, companies need to apply to the VAT commissioner with the necessary documents, and the VAT returns of both companies must include details of the machinery and parts. This tax waiver, addressing a long-standing request from exporters, benefits around 3,000 companies with bonded warehouse licenses that allow duty-free import of raw materials.