NBR plans mandatory BIN for business bank accounts

The National Board of Revenue (NBR) is planning to make VAT registration, or Business Identification Number (BIN), mandatory for opening and maintaining business bank accounts in a move aimed at broadening tax base and strengthening compliance enforcement.
Under the proposed reform, businesses will also be required to submit monthly VAT returns linked to their BIN, tightening oversight of transactions and improving revenue tracking. 
The measure is expected to be included in the national budget for the 2026-27 fiscal year.
Officials said the initiative is primarily intended to bring businesses operating with trade licences but without VAT registration into the formal tax net.
“The objective is to ensure full integration of eligible businesses into the VAT system and improve compliance through automation,” a senior NBR official said.
The proposal may also require existing business account holders to validate their BIN in order to continue operating their bank accounts, effectively linking financial transactions with tax registration status.
According to NBR data, more than eight lakh businesses are currently registered under BIN, but only around five lakh regularly file VAT returns. 
Industry estimates suggest nearly 70 lakh trade licence holders are active across the country, highlighting a significant compliance gap.
The reform is part of a broader digital tax integration strategy aimed at connecting VAT registration, banking data and taxpayer records into a unified platform to improve transaction monitoring and identify non-compliance risks.
VAT division officials said the initiative would strengthen revenue administration by creating a more integrated compliance ecosystem across financial and tax systems. 
However, they acknowledged that effective implementation would depend on system readiness and coordination among stakeholders.
Experts cautioned that while the reform could significantly improve revenue mobilisation, it should be accompanied by simplified registration procedures and stronger awareness programmes for small and medium enterprises (SMEs) to ensure smooth compliance.
Under the existing VAT framework introduced through the VAT and Supplementary Duty Act 2012, which came into effect in 2019, e-BIN registration is mandatory for VAT compliance, and VAT returns cannot be submitted without it.
Businesses are also required to file monthly VAT returns by the 15th of each month.
The NBR currently operates 12 VAT commissionerates across the country, including five in Dhaka, as part of efforts to modernise revenue administration through a fully online system. 
Earlier 11-digit VAT registration numbers have been replaced by the current nine-digit e-BIN system.
Under existing rules, businesses with annual turnover below Tk50 lakh are exempt from VAT, while those with turnover between Tk50 lakh and Tk3 crore pay a 4% turnover tax. 
Enterprises above that threshold fall under the standard VAT regime. Failure to obtain a BIN may result in a Tk10,000 penalty under current provisions.