Penalty Schedule
Late VAT Registration
Failure to register when mandatory threshold exceeded
BD 5,000
Late Filing of Return
Not filing by the 28th of month following period-end
BD 500+
Late Payment of VAT
1% per month on unpaid amount, compounding
1%/mo
Incorrect VAT Return
Errors or omissions that reduce VAT payable
BD 1,000+
Tax Evasion
Deliberate fraud, falsification, or concealment
3× tax + prison
Record Keeping Failure
Not maintaining records for minimum 5 years
BD 5,000
Appeal Process
Step 1
Request reconsideration from NBR within 30 days
Step 2
Appeal to Tax Appeals Committee within 30 days of NBR decision
Step 3
Final appeal to civil courts if committee decision is unsatisfactory