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Why and When Do You Need a TIN

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Nothing is certain in this world but death and taxes. However, paying taxes is not a burden but a responsibility toward the country. Taxes are a big concern in developing countries like Bangladesh, especially for businesses.

The government has made it possible for taxpayers to pay taxes through online TIN Registration Bangladesh easily. Like any other country, the Bangladesh government tracks a company’s tax payments or an individual via Tax Identification Number (TIN).

But why and when do you need a TIN? Let’s know in the following section. Before that, let’s know about TIN.

What is Tax Identification Number?

Tax Identification Number (TIN) is a unique registration number allotted to business enterprises or organizations registered under VAT. This 12-digit is used as a tracking number by the NBR (National Board of Revenue).

Moreover, TIN is mentioned in all tax and business-related transactions. It is also required on all tax returns filed with the NBR and demanded in other NBR dealings. The TIN is assigned to business enterprises to track their transactions.

Hence, it is required for all business entities and organizations registered under VAT. They have to register under Value Added Tax for conducting their business. If they have exceeded the definite threshold limits, they become liable to pay tax.

So they need to apply for VAT registration. TIN is mandatory for all business entities, including manufacturers, traders, dealers, and exporters. However, TIN is used for business transactions used in the country and internationally.

All business entities must mention the Tax Identification Number on official documents like invoices, quotation prices, sales orders, etc. Failure to specify the TIN in the document intentionally or as supervision will result in a penalty.

Why Do You Need a TIN?

Just like how a NID (National Identity Card) identifies an individual to the taxation department, the TIN identifies business entities registered under VAT.

It is basically a signal to the business entity that they are entitled to pay taxes based on their transactions. It’s not just about collecting and paying taxes. However, it is the consent to submit quarterly and other returns under the relevant laws and regulations.

Companies wishing to register under VAT must register a Taxpayer Identification Number. Here is why;

  • Without a TIN, a business entity cannot issue an invoice.
  • Tax Identification Number gives the benefits of Input Tax Credit.
  • It allows getting the tax status of a business by simply typing the TIN and other details.
  • Registered enterprise gets more benefits than non-registered enterprises.
  • TIN increases the credibility of the business entity because the business looks more prevalent and larger. It gives the business a professional gleam.
  • The enterprise looks more authentic and legitimate to the people.
  • Registered enterprises get more priority from the governmental departments.
  • The concerned authority can easily track VAT-related transactions and activities.
  • Ultimately, a TIN ensures the validity of business transactions and activities.

When Do You Need a TIN?

Different countries have different rules and threshold limits for TIN registration (Tax Identification Number). Hence, manufacturers or dealers should check the laws regarding the VAT rate for dealing with goods.

In Bangladesh, the registration threshold is around 8 million Taka, and the enlistment threshold is 3 million Taka. If the business has a turnover of more than 3 million Taka, they need to register for VAT and obtain their TIN. It takes one day to obtain the TIN certificate.

Document Checklist for Obtaining TIN Certificates

  • A Certificate of Incorporation
  • A copy of the Trade License
  • Memorandum and Articles of Association (for company)
  • A Bank Solvency Certificate (for company or proprietorship)
  • Three photographs of the Managing Director (for the company)
  • Three photographs of the Owner (for proprietorship)
  • Three passport-sized photograph
  • Copy of NID or Passport of entrepreneur

How to Obtain a TIN certificate in Bangladesh?

As a part of the development of digital Bangladesh, the process of obtaining TIN has become digitalized. So a lot of time and hassle have been saved. It becomes very easy to obtain the TIN certificate in one day.

Here is how:

  • Visit the website of the National Board of Revenue.
  • Provide the necessary information in the registration form to create a User ID.
  • Open an account with a phone number to obtain a User ID and password.
  • After providing the phone number, a code will be sent to verify the number.
  • Provide the code sent in the phone number and obtain the User ID and Password.
  • Log in into your account with your User ID and Password
  • Provide necessary information about your company in the TIN registration form
  • Submit the form and obtain the E-TIN certificate.


Evidently, a business entity must obtain TIN once it crosses the threshold limit. It is the moral responsibility of a citizen to pay taxes. Progress of the country is not possible without taxes. So, everyone should contribute to the development of the country.

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