Bangladesh VAT Rates 2026
Bangladesh (বাংলাদেশ (Bangladesh)) levies Value Added Tax as মূসক / VAT (Mushak). The standard rate is 15%, applied to most goods and services. Reduced rates of 10% and 7.5% and 5% apply to selected services including non-AC restaurants and transport.
Current rates — 2026
| Type | Rate | Applies to |
|---|---|---|
| Standard | 15% | Most goods and services |
| Reduced | 10% | Selected services including non-AC restaurants and transport |
| Reduced | 7.5% | Construction and certain trading activities |
| Reduced | 5% | Local traders and listed reduced-rate supplies |
| Zero-rated | 0% | Exports and deemed exports |
Registration and filing
| Registration threshold | BDT 30,000,000BDT 3 crore annual turnover for mandatory VAT registration; a turnover tax applies below |
| Tax authority | National Board of Revenue (NBR) |
| Filing frequency | Monthly Mushak-9.1 returns, due by the 15th of the following month |
Access rates via API
The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/BD endpoint to get Bangladesh data programmatically. Responses are cached for 24 hours.
curl http://localhost:3000/api/v1/rates/BD
# No authentication required for rate lookups
# Response:
# { "country_code": "BD", "tax_type": "vat",
# "standard_rate": 15, "reduced_rates": [10, 7.5, 5],
# "currency": "BDT", "last_updated": "2026-06-12" }Fetching the rate in code
// Fetch current Bangladesh VAT rates (no auth required)
const rates = await fetch('http://localhost:3000/api/v1/rates/BD').then(r => r.json());
// → { standard_rate: 15, reduced_rates: [10, 7.5, 5],
// currency: 'BDT' }
applyRate(rates.standard_rate);About Bangladesh VAT
Bangladesh enacted a clean single-rate 15% VAT law in 2012 but never implemented it as designed — when the law finally took effect in 2019 it carried a ladder of 5%, 7.5% and 10% rates alongside the 15%, plus truncated bases for many sectors, leaving one of South Asia's most fragmented VAT systems. The ready-made garment export industry, the economy's backbone, operates on zero-rating with bonded warehouses. NBR is rolling out electronic fiscal devices in retail to plug chronic leakage.
VAT in Bangladesh is administered by the National Board of Revenue (NBR).
Sources: PwC Worldwide Tax Summaries · National Board of Revenue (accessed Jun 2026)
Rate history
- 2019New VAT and Supplementary Duty Act implemented with multiple rates instead of the planned uniform 15%
Frequently asked questions
What is the VAT rate in Bangladesh in 2026?
15% standard, with reduced rates of 10%, 7.5% and 5% applying to listed sectors and truncated-base supplies.
What is the VAT registration threshold in Bangladesh?
BDT 3 crore (30 million) annual turnover; businesses between BDT 50 lakh and 3 crore pay a 4% turnover tax instead.
Related concepts and guides: