Bangladesh VAT / Sales Tax
Detailed vat / sales tax rates and rules for Bangladesh in 2026.
VAT / Sales TaxBDT
Bangladesh's VAT is levied at a standard rate of 15%. A turnover tax of 4% applies to businesses with annual turnover between BDT 30-50 lakh. Supplementary duty of 20-500% applies to luxury and demerit goods. Essential items including rice, vegetables, and basic foodstuffs are exempt.
Standard Rate
15%
Registration Threshold
BDT 30 lakh annual turnover (approximately $27,500)
Reduced Rates
0% — Exports, essential food items, agricultural products5% — Certain essential services and small businesses (turnover tax option)
How Bangladesh VAT / Sales Tax compares
Bangladesh’s standard VAT / sales tax rate of 15% is the 93rd highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and Asia’s regional average of 9.6%.
Bangladesh
15%
Asia average
9.6%
Global average
13.7%
