VATLive > Blog > VATLive > Bangladesh 15% VAT implementation Jul 2019

Bangladesh 15% VAT implementation Jul 2019

  • Jun 19, 2019 | Richard Asquith

The Bangladesh 2019/20 budget now includes details of the proposed implementation of a 15% VAT regime from the 1stJuly 2019.

Key features of the regime will include:

  • Standard rate of 15%, plus three reduced rates of 10%, 7.5% and 5% (the original plan had been for a single 15% rate)
  • Only input VAT charged at 15% would be deductible against output VAT, raising the prospect of cumulative taxes
  • Exemptions are granted for agricultural supplies and financial services
  • The VAT registration threshold will be BDT30m
  • Traders up to BDT5m will be exempted
  • Traders between BDT5m and BDT30m will be subject to a 4% Turnover Tax
  • Online e-services provided from abroad will be included within the tax net

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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