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Import duty and VAT in Bangladesh: how to estimate the landed cost

Published · 3 min read

How import duty and 15% VAT stack up on shipments into Bangladesh, with a worked landed-cost example.

Key facts

PlaceBangladesh
TaxVAT
Standard rate on file15%
Multiply net price by1.15
Tax share of a gross price13.04%
CurrencyBDT

The customs value

Duty is usually charged on the customs value of the goods, which in many countries includes the price paid plus shipping and insurance to the border. Some countries use the value at the point of export instead, so check the valuation basis that applies in Bangladesh.

Worked example

Here is the calculation with sample figures. Change any number in the Bangladesh Import Duty Calculator to run your own.

Worked example: Bangladesh Import Duty Calculator
Value of goodsBDT2,000.00
Shipping and insuranceBDT100.00
Duty rate (%)5%
Tax rate (%)15%
Import dutyBDT105.00
TaxBDT330.75
Landed costBDT2,535.75

Duty rates depend on the product code

Every product has a tariff classification code, and the duty rate is set per code. Two similar products can carry very different rates. Trade agreements, quotas and anti-dumping measures can change the rate again, so the 5% used in the example below is only an illustration.

VAT is charged on top of duty

Import VAT in Bangladesh is normally charged on the customs value plus the duty, which means you pay tax on the duty itself. Registered businesses can often reclaim import VAT as input tax, but the duty is a real cost.

Quick reference at 15%

Common amounts in Bangladesh, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.

AmountTax on net amountGross (net + tax)Net if amount includes tax
BDT10.00BDT1.50BDT11.50BDT8.70
BDT50.00BDT7.50BDT57.50BDT43.48
BDT100.00BDT15.00BDT115.00BDT86.96
BDT250.00BDT37.50BDT287.50BDT217.39
BDT500.00BDT75.00BDT575.00BDT434.78
BDT1,000.00BDT150.00BDT1,150.00BDT869.57
BDT5,000.00BDT750.00BDT5,750.00BDT4,347.83

How Bangladesh compares

Standard rates on file for other countries. A difference of a few points matters most on high-value purchases and on cross-border sales.

PlaceRate on fileCompared with 15%
Austria20%higher
Azerbaijan18%higher
Bahrain10%lower
Belarus20%higher
Belgium21%higher
Bolivia13%lower

Using the calculator step by step

  1. Open the Bangladesh Import Duty Calculator.
  2. Type your figures into the numbered lines. Results update as you type.
  3. Check the rate field. It starts at 15%; change it if a reduced rate, local surcharge or exemption applies to you.
  4. Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.

Key terms

Taxable income
Income left after allowances and deductions, on which the tax rates are applied.
Zero rate
A rate of 0% on a taxable supply. Unlike an exemption, the seller can usually still reclaim tax on costs.
Tax credit
An amount subtracted directly from the tax bill, worth its full face value.
Standard rate
The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.
Effective rate
Total tax divided by total income, the average rate you actually pay.

Common mistakes to avoid

Run your own numbers. The Bangladesh Import Duty Calculator updates as you type and shows the formula it uses.

Frequently asked questions

Is VAT charged on import duty in Bangladesh?

In most systems, yes: import VAT is calculated on the customs value plus duty.

Can I reclaim import VAT?

Businesses registered for VAT can usually reclaim it as input tax, subject to local rules and proper documentation.

This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.

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