standard rated Goods and services
What are standard rated Goods and services in Bangladesh?
In Bangladesh, the standard Value Added Tax (VAT) rate is 15%. This rate applies to the majority of goods and services that are not specifically exempt or subject to reduced rates.
Here's a general idea of the types of goods and services that typically fall under the standard 15% VAT rate:
Most manufactured goods: This includes a wide array of locally produced items, excluding those that have been granted specific exemptions or fall under reduced rate categories. For example, furniture manufacturing (if the manufacturer directly delivers to consumers) is subject to a 15% VAT.
Imported goods: Generally, most imported goods are subject to the standard 15% VAT upon entry into Bangladesh, unless they fall under specific exemptions or reduced rates.
Most services: A broad range of services are subject to the standard 15% VAT. Some examples include:
- Air-conditioned hotels.
- Decorators and caterers.
- Advertisement agencies.
- Printing presses (except for books, journals, and educational products for students).
- Auctioneers.
- Freight forwarders.
- Survey organizations.
- Plant or capital machinery renting organizations.
- Courier and express mail services.
- Repairing or servicing of taxable goods.
- Consultancy and supervisory firms.
- Lessors.
- Audit and accounting firms.
- Security services.
- Television and online program producers.
- Legal advisors.
- Vehicle renting service providers.
- Architects, interior designers, and graphic designers.
- Engineering firms.
- Sound and lighting equipment renting service providers.
- Participants in board meetings.
- Advertisement telecasters through satellite channels.
- Chartered airlines or helicopter renting organizations (except air ambulance).
- Purchasers of auctioned goods.
- Clearing and maintaining agencies of buildings, floors, and premises.
- Lottery ticket sellers.
- Immigration advisors.
- Event organizers.
- Manpower service providers.
- Other miscellaneous services.
- Sponsorship services.
- Banking and non-banking service providers.
- Credit card services.
- Coaching centers.
It's important to note that while 15% is the standard rate, Bangladesh also has reduced VAT rates (such as 5%, 7.5%, and 10%) applicable to specific goods and services. Additionally, some essential goods and services are entirely exempt from VAT. The National Board of Revenue (NBR) is the authority that issues and updates the specific lists and regulations regarding VAT rates and exemptions in Bangladesh. Businesses with an annual turnover exceeding a certain threshold (currently BDT 8 million) are generally required to register for VAT and apply the appropriate rates to their taxable supplies.