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.
