VATupdate

VAT rates in Bangladesh

Quick overview

Standard Rate Reduced Rate Other Rates
15% 5%, 7.5%, 10% 0%

Recent developments

Recently it was announced that 15% would apply to DAE fees, and the VAT on telcos’ fees was reduced. For more information about (recent) rate change developments in Bangladesh, please click here.

Standard rate: 15%

15% VAT is applicable for all business or industrial units with an annual turnover of Taka 2 million and above. This rate applies for all transactions that take place in Bangladesh, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Reduced rate of 5%:

Examples:

  • Certain juices
  • LPG gas

Reduced rate of 7.5%:

Examples:

  • Certain papers (copy, packing)
  • Non-AC hotel and restaurant

Reduced rate of 10%:

Examples:

  • Repair and servicing
  • Transport
  • Printing services

Zero rate (0%)

Examples of 0% supplies/services are:

  • Goods for export
  • Services physically carried out on goods situated outside Bangladesh
  • Services included in the customs value of goods that are imported into Bangladesh

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on May 21, 2021.

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