Bangladesh VAT calculator (মূসক, 15% standard rate)

How মূসক (VAT) in Bangladesh is calculated

Section 15(3) of the **Value Added Tax and Supplementary Duty Act 2012** sets the rate at **15 per cent**. The Government may set reduced rates or fixed amounts for the goods and services in the **Third Schedule** — currently **10%**, **7.5%** and **5%** — and a registered supplier may choose 15% instead. Exports are **zero-rated** (s.21) and First Schedule supplies are **exempt**: no VAT is charged and no input tax is recovered. So ৳1,00,000 carries **৳15,000** at the standard rate; to take VAT out of a price, divide by 1.15.

A **service imported** from abroad is taxed at 15% and the recipient pays (s.20, replaced by the Finance Act 2026; the paying bank deposits it). Registration is required once turnover over twelve months **exceeds ৳50 lakh** (s.4(1), s.2(57)); above **৳30 lakh** (s.2(48)) a business must enlist for **turnover tax**, 4% of turnover until the Government notifies fixed sector amounts of at most ৳2 lakh (s.63(1)). Both thresholds were cut by Act 77 of 2026, from ৳3 crore and ৳50 lakh.

Importers, exporters, tender and contract suppliers, branch or liaison offices of foreign firms, VAT agents and anyone supplying, making or importing goods or services that carry **supplementary duty** must register whatever their turnover (s.4(2)). Not modelled: supplementary duty itself, specific (fixed-amount) taxes, advance tax at import and VAT deducted at source. Estimate, not tax advice.