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12.1. VAT on the Supply of Goods by Non-Residents

The supply of goods by non-residents carrying on economic activities through a fixed place in Bangladesh is subject to VAT in Bangladesh. Non-residents not carrying on economic activities from a fixed place in Bangladesh are required to appoint a VAT agent to comply with their VAT obligations.

The supply of goods by a non-resident without a permanent establishment to any VAT-registered payer in Bangladesh is subject to a reverse charge VAT in the hands of the importer.

Effective 1 July 2019, any supplies made by a non-resident entity, not from or through a fixed place in Bangladesh, are treated as being made in Bangladesh, if:

  • Supplies relate to immovable property situated in Bangladesh; and
  • Item, article, or goods supplied are transferred, conferred, installed, or assembled in Bangladesh.

Online Sales

Online sales i.e., sale or transfer transactions undertaken using an electronic network by a manufacturer or supplier of goods and services without a physical presence in Bangladesh, are subject to VAT at the rate of 5%.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, Bangladesh announced an exemption from VAT on import of medical and protective equipment, including for imports of raw materials for such products and equipment by certified manufacturers until 30 June 2021 (extended from 31 December 2020).