BIN Number in Bangladesh – Process, Purpose, and Legal Requirements

BIN Number in Bangladesh – Process, Purpose, and Legal Requirements

The Business Identification Number (BIN) is a unique 13-digit number issued by the National Board of Revenue (NBR) in Bangladesh. It is mandatory for businesses engaged in taxable supply of goods or services under the Value Added Tax and Supplementary Duty Act, 2012. BIN is essentially the VAT registration number and serves as a primary identifier for tax purposes.

Legal Basis

• Value Added Tax and Supplementary Duty Act, 2012
• Value Added Tax and Supplementary Duty Rules, 2016
• NBR SROs and Circulars

What is BIN?

• BIN stands for Business Identification Number
• It is a 13-digit unique VAT registration number issued by NBR
• Format: XXXXXXXXXXXXX (13 digits)
• It replaces the older VAT Registration Certificate system

Who Needs a BIN?

Businesses or individuals involved in the supply of taxable goods or services, or who import goods for commercial use, must obtain a BIN. This includes:

• Limited companies
• Partnerships
• Sole proprietors
• E-commerce businesses
• Importers and exporters
• Manufacturing entities
• Service providers (above VAT threshold)

Businesses not meeting the turnover threshold may voluntarily obtain a Turnover Tax Registration.

Mandatory Use Cases

BIN is mandatory for:

• Participating in government tenders
• Import and export activities
• Obtaining trade license (in many city corporations)
• Opening a LC (Letter of Credit) for imports
• Filing monthly VAT returns
• Obtaining refunds or rebates from NBR
• Bank loan applications for registered entities

BIN vs. TIN

Basis	BIN	TIN
Full form	Business Identification Number	Taxpayer Identification Number
Purpose	VAT and indirect tax registration	Income tax purposes
Issuing authority	NBR VAT Online System	NBR (TIN portal)
Format	13 digits	12 digits
Use case	VAT return, business transaction	Income tax filing, personal tax

How to Obtain a BIN

Step-by-Step Process (Online)

1. Visit the NBR VAT Online Portal
   https://vat.gov.bd
2. Create an Account
   • Register with email and phone number
   • Verify via OTP
3. Login and Fill Out Application
   • Provide trade license, TIN, bank account details, business address, ownership information
   • Upload necessary documents
4. Submit the Application
5. Receive BIN Certificate
   • If approved, a downloadable BIN certificate is issued
   • No physical copy required; e-Certificate is valid

Required Documents

• Valid Trade License
• TIN Certificate
• National ID/Passport of Owner or Directors
• Company Registration (RJSC) for Limited Companies
• Lease Agreement or Utility Bill (for address verification)
• Bank Account Details
• Photo of Owner or Authorized Person

Responsibilities After BIN Registration

Once a BIN is issued, the business must:

• Display the BIN certificate at the business premises
• File monthly VAT returns using the online portal (even NIL returns)
• Issue VAT challans/invoices in prescribed format
• Maintain accounts and records for audit purposes
• Deduct and deposit VAT at source, if applicable

Cancellation of BIN

BIN may be cancelled if:

• The business is closed
• There is no taxable supply
• Voluntary deregistration is applied for
• NBR initiates cancellation due to inactivity or violation

Application for cancellation must be made through the VAT online system with proper justification and documents.

Penalties for Non-Compliance

• Operating a VAT-liable business without a BIN can lead to fines and penalties
• Failure to submit VAT returns attracts penalty of BDT 10,000 + daily fines