# Bangladesh VAT Guide for 2026: Rates, Registration & Filing

Canonical: https://trykintsugi.com/sales-tax-guides/apac/bangladesh
Published: September 22, 2026

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.

- **SaaS:** Taxable
- **Digital Goods:** Taxable

## 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

## 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](/sales-tax-guides/apac).

#### 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

- [1] [National Board of Revenue — VAT FAQ (15% standard rate)](https://nbr.gov.bd/faq/vat-faq/eng)

- [2] [National Board of Revenue — VAT publications and guidance](https://nbr.gov.bd/publications/vat/eng)

- [3] [National Board of Revenue — Value Added Tax and Supplementary Duty Act, 2012 (registration and turnover-tax thresholds)](https://nbr.gov.bd/uploads/acts/18.pdf)

Verified July 2026 against National Board of Revenue guidance.

#### Frequently asked questions

### What is the VAT rate in Bangladesh?

The standard VAT rate is 15%, with reduced rates of 5%, 7.5%, and 10% for specified sectors.

### What is the VAT registration threshold?

Registration is mandatory above BDT 5 million annual turnover; smaller businesses (roughly BDT 3–5 million) enlist for the 4% turnover tax.

### Is SaaS taxable in Bangladesh?

Yes. SaaS and digital services are taxed at the standard 15% VAT rate, including supplies by non-resident providers.

### What must a non-resident digital seller do?

Register for VAT and collect 15% from the first B2C sale, and appoint a resident VAT agent to file and remit.

### When are Bangladeshi VAT returns due?

Monthly, by the 15th of the following month, with payment due on the same date.

### What is the penalty for late Bangladeshi VAT?

A BDT 10,000 penalty for a late or non-filed return, plus interest of about 1% per month on unpaid VAT.