Bangladesh — Imported services reverse charge
This page records one dated change. For the rules in Bangladesh as they stand today, see the Bangladesh guide →
- Jurisdiction
- 🇧🇩 Bangladesh
- Tax
- VAT
- Change type
- Update
- Status
- In force
- Impact
- Action required
- Effective
- 1 July 2026
- Instrument
- BD-FINACT-96-2026
- Systems
- Tax engine, ERP, Reporting
- Verified
- Fetched from official source · high confidence
Configure accounts-payable and tax-engine processes so that any bank or foreign-exchange dealer payment for an imported service withholds and deposits 15% VAT by treasury challan before remittance, and reconcile the challan as the import VAT invoice for input credit.
Tax engineERPReporting
The Finance Act 2026 substitutes Section 20 of the Value Added Tax and Supplementary Duty Act 2012. All services imported into Bangladesh, except those exempted in the First Schedule, are treated as taxable supplies at a 15% VAT rate collected by reverse charge. The bank, NBFI or authorised foreign-exchange dealer settling payment to the foreign service provider must deposit the 15% VAT to the government treasury against the importer's circle code before releasing payment, and the treasury challan serves as the importer's tax invoice. Input credit is available where the imported service is used as an input.