Bangladesh VAT and TAX Schedule 2026-2027: Deduction Rates & Rules | Port Zone

 

Bangladesh VAT and TAX Schedule 2026-2027: Complete Rate & Rules Guide

Under the latest Bangladesh National Budget and Income Tax Act (ITA) regulations for the 2026-2027 financial year, the National Board of Revenue (NBR) has outlined specific rates for VAT Deduction at Source (VDS) and Tax Deduction at Source (TDS) across various goods, services, and commercial activities.

Whether you are a business owner, contractor, freelancer, or service provider, maintaining compliance with these withholding tax and VAT rules is essential to ensure smooth operations and avoid legal penalties.

Below is a detailed breakdown of the official VAT & TAX Schedule for 2026-2027 in Bangladesh.

1. Consultancy & Professional Services

Different rates apply to consultancy firms, individual advisers, audit firms, and training honorariums under Section 90 of the Income Tax Act:

Particulars / Service Type	Nature of Service	VAT at Source Rate	TAX at Source Rate
Consultancy & Supervision	Consultancy, feasibility study, project design & supervision	15% (Ref: S032.00)	Individual: 15% Others: 7.5% (ITA Sec 90)
Professional Services	Chartered Accountants, Tax Advisers, Legal & Interior Architecture	15% (Ref: S034.00, S045.00, S051.00)	Individual: 15% Others: 7.5% (ITA Sec 90)
Meeting & Training Fees	Facilitator for workshop, seminar, or training sessions	As per standard rules	20% of total fees (ITA Sec 90, SRO-273)

2. Construction Contractors & Procurement Suppliers

Businesses engaged in physical works, supplies, or raw material trading must deduct VAT and TAX based on the following framework:

Category	VAT at Source Rate	TAX at Source Rate	Legal Reference
Construction Contractor	10% (Service Code: S04.00)	5%	ITA Sec 89, SRO-273
Procurement Provider / Goods Supplier	10% (Service Code: S037.00)	5%	ITA Sec 89, Rule-3, SRO-273
Furniture & Fixtures	7.5% on supply/manufacturing	7.5%	ITA Sec 89
Computer & Accessories Supply	10% (Service Code: S037.00)	5%	ITA Sec 89, SRO-273

3. Advertising & Digital Marketing Rates

With the rise of digital marketing, advertising deductions are split into online and traditional channels:

• Online Direct Advertising (YouTube, Facebook, Google & Social Media): 5% VAT at source (Service Code: S043.00) and 5% TAX at source (ITA Sec 92).
• Traditional Advertising Agencies (Newspapers, Magazines, Private TV): 15% VAT at source (Service Code: S07.00) and 5% TAX at source (SRO-273).

4. IT & Internet Services

To support IT-enabled services (ITES) and digital connectivity, prescribed rates are kept streamlined:

• IT Enabled Services (ITES): Computer networking, servicing, setup, etc. — 5% VAT at source (Service Code: S012.14) and 5% TAX at source (ITA Sec 90).
• Internet Service Providers (ISP): 5% VAT at source (Service Code: S012.14) and 5% TAX at source (ITA Sec 90).

5. Rent, Hotels & Venue Hiring

Commercial space rentals and event spaces carry distinct withholding requirements:

Particulars	VAT at Source Rate	TAX at Source Rate
Commercial Space / Office Rent	15% (Service Code: S074.00)	10% (ITA Sec 109)
Venue Hiring (NGO Hall / Hotel / Club)	15%	10% (ITA Sec 110)
Hotel AC (Accommodation & Food)	15%	5% (Combined) / 10% (Separated)
Restaurant (AC & Non-AC)	5%	5% (ITA Sec 89)

6. Logistics, Freight & Other Services

Service Type	VAT Rate	TAX Rate
C&F Agent Services	15% (Service Code: S015.20)	10% on commission (ITA Sec 122)
Courier & Express Mail (EMS)	15% (Service Code: S028.00)	5% (ITA Sec 89)
Cleaning & Security Agencies	15%	10% on commission or 1% gross bill (whichever is higher)
Rent-a-Car Services	15% (Service Code: S049)	2% (ITA Sec 90)
Graphic Design Services	15% (Service Code: S050.20)	10% (ITA Sec 90)

🏛️ Tax Deposit Information

For official tax filings and government treasury deposits under this zone:

• Name of Zone: xxxx
• TIN Number: xxxx
• PORT ZONE Deposit Code: xxxx