A VAT audit conducted by the Customs, Excise and VAT Commissionerate or the Audit, Intelligence & Investigation Directorate (AIID) examines discrepancies between reported sales, input tax credits, and audited annual balance sheets. Knowing your legal rights and presenting a cohesive documentation defense prevents catastrophic revenue demands.
Statutory Timeline: Under Section 90, tax authorities may conduct a comprehensive VAT audit covering up to five preceding financial years.
Common Inspection Triggers
- Sharp deviations in input-output coefficient ratios without declared price revisions.
- Continuous accumulation of negative VAT balances (excess input tax rebates) over consecutive months.
- Unreconciled turnover differences between annual audited accounts and cumulative Mushak 9.1 filings.
- Failure to deposit Value Deducted at Source (VDS) collected from suppliers within statutory deadlines.
Preparing Your Audit Defense Pack
- Consolidate all 12 monthly Mushak 9.1 returns alongside original Treasury Challans.
- Provide cross-matched bank statements confirming that all sales revenues passed through corporate accounts.
- Organize supplier Mushak 6.3 invoices validating all claimed input tax rebates.
- Draft a formal legal reply addressing audit queries item by item under Section 83/84.
Face VAT audits with confidence. EasyTax's senior tax lawyers and former bar association leadership represent businesses before VAT Commissionerates across Bangladesh. Request VAT Audit Defense or Contact EasyTax.
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Regulatory Notice: This compliance guide is for general educational information only under Bangladeshi statutory frameworks (including the Income Tax Act 2023, Value Added Tax and Supplementary Duty Act 2012, and Companies Act 1994) and does not constitute formal legal or tax counsel. Government gazette rules, statutory regulatory orders (SROs), and procedural circulars are subject to periodic administrative updates. Please consult an EasyTax advocate or tax practitioner for customized advisory on your specific situation.
