SD and VAT stack, they don't add side by side
Supplementary Duty is calculated first, on the discounted price — then VAT is charged on that combined figure, not on the original base price. Skipping this order is the most common invoicing mistake for products that carry both.
Frequently asked questions
What is the standard VAT rate in Bangladesh?
The standard rate is 15%, though several goods and services are taxed at reduced rates (5%, 7.5%, 10%) or are exempt entirely. Change the VAT rate field to match your specific product or service category.
What is Supplementary Duty and when does it apply?
Supplementary Duty (SD) is an extra duty on specific goods considered luxury or discouraged items (like tobacco, certain vehicles, and cosmetics), charged on the value before VAT — VAT is then charged on the value plus the SD, not on the base price alone. Leave it at 0% if it doesn't apply to your product.
Why show a "VAT-inclusive" price too?
Retail price tags and invoices are sometimes quoted inclusive of VAT and sometimes exclusive. The second figure lets you check the calculation either way from a single number, without needing to redo the math by hand.
Last updated: June 2026