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VALUE ADDED TAX FAQ

How VAT impossible price and tax are determined in case of import?

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VAT imposable price has to be determined adding all taxes with imposable Import Duty (except VAT and advance Income Tax).

In case of imported goods, if no tax other than Import Duty is levied, value on which Import Duty is imposable, shall be the VAT imposable price of the said goods or service.

In case of import VAT has to be assessed multiplying 15% directly on the VAT imposable value.

  • At the import level, in addition to Import Duty, Supplementary Duty, Regulatory Duty, etc. are applicable in particular cases, in accordance with the nature of import.

Method of VAT assessment at import level:

VAT imposable Value = Supplementary Duty Imposable value + supplementary Duty

Supplementary Duty imposable value = Dutiable Value + Import Duty + Regulatory Duty + Other Duties

Advance Tax imposable value = VAT imposable value                                                              

 Example: 25% Import Duty (ID), 3% Regulatory Duty (RD), 20% Supplementary Duty (SD), 15% VAT, 3% Advance Tax (AT), 5% Advance Income Tax (AIT) are already levied on import of any goods. At the import stage the of the goods consignment its Dutiable Value (DV) stands at Taka 50,000.00. Let us assess the base value for any tax at import stage and the amount of applicable duty-tax.

TaxFormula of Base ValueBase ValueRateDuty-Tax
Import DutyDV50,000.0025%12,500.00
Regulatory DutyDV50,000.003%  1,500.00
Supplementary DutyDV+ ID+ RD64,000.0020%12,800.00
VATDV+ ID+ SD+ RD76,800.0015%11,520.00
Advance TaxDV+ ID+ SD+ RD76,800.003%   2304.00
Advance Income TaxDV50,000.005%  2,500.00
Net Duty-Tax      40,624.00

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