VAT returns to be filed within 15 days

VAT Return Deadline Set to Return to 15 Days

Thebangladaily.com – Businesses and taxpayers will again be required to submit value-added tax returns within 15 days after the close of each tax period under a proposed change approved by the Cabinet.

The draft Value Added Tax and Supplementary Duty (Amendment) Ordinance, 2026 received Cabinet approval at a meeting held at the Secretariat on Monday. Prime Minister Tarique Rahman chaired the meeting.

The proposal restores a shorter VAT filing timetable by amending Section 64 of the Value Added Tax and Supplementary Duty Act, 2012. The revised rule would replace the existing arrangement that permits returns to be submitted within 15 days following three consecutive tax periods.

Different timetable for selected institutions

While the general deadline would be 15 days, several categories of return filers would be given additional time. Government bodies, semi-government organisations, autonomous institutions, banks, insurance companies and entities submitting nil or zero VAT returns would have up to 20 days after the relevant tax period ends.

The separate deadline recognises that these institutions may follow different internal processes for preparing, checking and approving tax-related documents. Taxpayers eligible for the 20-day window will still need to ensure that their returns are filed within the extended period applicable to them.

For other VAT-registered businesses, the proposed rule would make timely preparation of sales, purchase and tax records more important at the end of every tax period. A 15-day deadline leaves a relatively limited period for reconciling invoices, calculating tax liabilities and completing the formal return process.

Public holidays will not shorten the filing opportunity

The amendment also addresses cases in which the final day for submission falls on a public holiday. If the 15th day is a public holiday, the return may be filed on the next working day.

This provision is intended to prevent a deadline from expiring on a day when normal official services may not be available. Taxpayers should nevertheless keep track of the calendar well before the final date, particularly where public holidays occur near the end of the filing window.

The holiday provision specifically clarifies the deadline tied to the 15-day requirement. Organisations that qualify for the longer filing period will need to follow the rules applicable to their category and remain attentive to any official guidance issued as the ordinance is put into effect.

What the proposed change means for VAT compliance

The central effect of the amendment is a return to a more frequent filing rhythm. Instead of relying on a deadline that comes after three tax periods, businesses would be expected to complete the VAT return process shortly after each individual period closes.

For taxpayers, the practical focus will be maintaining complete and organised transaction records throughout the tax period rather than leaving substantial work until the filing date approaches. Sales information, purchase documentation and other records needed to prepare a return may have to be reviewed promptly once the period ends.

Businesses with accounting teams or external tax advisers may also need to align their internal schedules with the proposed 15-day timeframe. The change does not alter the importance of accurate reporting; it changes the period in which the reporting must be completed.

Entities filing zero returns are included among those allowed 20 days. A zero return generally concerns a filer that has no VAT amount to report for the relevant period, but the filing obligation itself remains significant where such a return is required. The extended deadline does not remove the need to submit the return.

Section 64 of the 2012 law

The proposed ordinance would amend Section 64 of the Value Added Tax and Supplementary Duty Act, 2012, which deals with the timing of VAT return submission. By revising this section, the government is seeking to replace the current three-tax-period filing arrangement with the restored 15-day requirement.

The Cabinet’s approval of the draft marks an important step in the process, but taxpayers will need to monitor the formal implementation of the ordinance and any related instructions. Businesses should use the transition period to review their recordkeeping and filing routines so that they can respond efficiently once the revised deadline applies.

For many businesses, the most immediate lesson is simple: VAT compliance may soon require action much sooner after the end of each tax period. Keeping documents current, identifying the correct filing category and noting holiday-related deadline adjustments can help reduce the risk of late submission.

The proposed framework maintains a longer allowance for specified public-sector and financial institutions, as well as for zero-return filers, while setting a 15-day standard for the wider taxpayer base. Its stated structure combines a tighter general deadline with limited additional time for categories identified in the amendment.