Bangladesh VAT compliance update

The latest Bangladeshi budget contains a range of changes to the compliance regime to help reduce the administrative burden for companies. The current Bangladeshi VAT rate is 15%.

The compliance changes include:

• A limit of the levels of fines for VAT evasion now set to 50% of the value of the goods concerned. Previously there had been no upper limit.
• Phased withdrawal of the complex base value systems for calculating VAT on a number of goods and services
• Introduction of online VAT returns and VAT registrations through a special portal
• Reclassifications to higher reduced VAT rates of many services
• Imported mobile phones will be subject to 15% VAT instead of 10%