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Bangladesh VAT on foreign digital services

Bangladesh implemented Value Added Tax obligations on non-resident providers of digital services to its consumers on 1 July 2019. Generally, the reduced VAT rate of 5% applies – but there are many exceptions when the standard 15% is imposed (e.g. social media). VAT applies to both B2C and B2B transactions.

There is no requirement to appoint a Fiscal Representative. Follow VAT Calc’s global VAT and GST on digital services tracker for live updates on worldwide reforms.

What digital services are liable to Bangladeshi VAT?

Income from the following services are subject to VAT:

  • Web hosting and support
  • Images and texts
  • E-learning (automated)
  • Online gaming
  • Download streaming music and videos
  • Broadcasts
  • SaaS or cloud-based software, plus downloads
  • Online auctions
  • Advertising and web listing
  • Data processing and storage

The VAT obligations also extend to marketplaces and similar electronic platforms that enable their third-party providers to sell to Bangladeshi consumers and businesses.

VAT registration and compliance

VAT registrations with the National Board of Revenue can be done online.

Information technology-enabled services (ITES) are charged at the reduced VAT rate of 5%. However, the tax office is looking to extend the range of digital services subject to the standard rate of 15%.

Once VAT registered, most tax payers are subject to monthly returns. Filings must be submitted by the 15th of the following month.

Asia Pacific VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Australia 10% Jul 2017 AUD $75,000
Azerbaijan 12% Jan 2017
Armenia 20% Jan 2022 AMD 115million
Bangladesh 5% - 15% Jul 2019 B2B and B2C
Bhutan 7% Jul 2021 Nu 5million
Cambodia 10% Mar 2022 KHR 250m
China 6%-13% N/a Nil Withholding VAT; B2B and B2C
Fiji 9% TBC FJD 300,000
India 18% Jul 2017 -
Indonesia 11% Aug 2020 IDR600m or 12k customers
Japan 10% Oct 2015 JPY 10 million
Kazakhstan 12% Jan 2022 Nil
Kyrgyzstan 12% Jan 2022 Nil
Laos 7% Feb 2022 LAK 400m
Malaysia 6% Jan 2020 RM500,000
Nepal 13% Jul 2022 Rupees 2m Also 2% DST
New Zealand 15% Oct 2016 NZD 60,000
Pakistan 2% Sep 2021 Nil Marketplace Withholding VAT
Philippines 12% TBC P 3million
Singapore 7% Jan 2020 S$ 100,000
South Korea 10% Jul 2015 Nil
Taiwan 5% May 2017 NTD 480,000
Tajikistan 18% Jan 2021
Thailand 7% Sep 2021 1.8m Baht
Uzbekistan 15% Jan 2020 Nil
Vietnam 10% Dec 2020

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