Bangladesh VAT Guide for 2026: Rates, Registration & Filing
Bangladesh's standard VAT rate is 15%. Covers registration, the treatment of imports and digital services, and monthly return requirements for businesses selling into the country.
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Key Takeaways
Bangladesh's standard VAT rate is 15%, with reduced rates of 5%, 7.5%, and 10% for specified sectors and a 4% turnover tax for smaller enterprises. A business registers for standard VAT once annual turnover exceeds BDT 5 million, while businesses between BDT 3 million and BDT 5 million enlist for the turnover tax instead; non-resident digital-service suppliers register separately. Exports are zero-rated and basic foodstuffs and essential social services are exempt; SaaS and digital services are taxable at the standard 15% rate, including for non-resident providers.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Sales Tax Rates
Bangladesh's Value-Added Tax (VAT) has a standard rate of 15% under the VAT and Supplementary Duty Act 2012, with reduced (truncated) rates of 5%, 7.5%, and 10% for specified sectors and a 4% turnover tax for small enterprises below the VAT threshold. Exports are zero-rated. The National Board of Revenue (NBR) administers it.
Rate | Applies to |
|---|---|
Standard 15% | Most goods and services |
10% / 7.5% / 5% | Reduced (truncated) rates for specified sectors |
4% | Turnover tax for small enterprises below the VAT threshold |
Zero 0% | Exports and zero-rated supplies |
Exempt | Basic food, agriculture, and specified essential services |
For more detail, see our APAC VAT guides.
Bangladesh VAT Calculator
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Bangladesh · VATRates as of September 2026. Source: NBR: VAT FAQ (opens in a new tab); NBR: VAT and Supplementary Duty Act 2012 (opens in a new tab).
Bangladesh · Standard rate
15%
VAT rate
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This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.
Registration & nexus threshold
Bangladesh uses VAT registration and enlistment thresholds, not US-style economic nexus. A business must register for 15% VAT once its annual turnover exceeds BDT 5 million, while a business with turnover between BDT 3 million and BDT 5 million enlists for the 4% turnover tax instead [2][3]. Non-resident suppliers of digital and electronic services to Bangladesh must register for VAT, appointing a local VAT agent where they have no fixed place in the country, and charge 15% [1][2]. Registration steps are in the How to Register section.
Filing frequency & deadlines
VAT returns (Mushak-9.1) are filed monthly, with the return and payment due by the 15th of the month following the tax period.
Exemptions
Exports are zero-rated, and basic foodstuffs, agriculture, and specified essential and social services are exempt. SaaS and digital services are taxable at the standard 15% rate, including services supplied by non-resident providers such as software subscriptions and online advertising.
Penalties
A late or non-filed VAT return draws a penalty of BDT 10,000, and unpaid VAT accrues simple interest of 1% per month, for up to 24 months. Broader non-compliance and evasion carry further fines up to the amount of tax evaded.
Sources
Verified July 2026 against National Board of Revenue guidance.
Frequently asked questions
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