Free VAT Calculator in Bangladesh , 2026
Calculate VAT in seconds using Bangladesh’s official NBR rates. Add VAT to a price before tax, or remove VAT from a price that already includes it, using the standard 15% rate or any of the truncated rates. Enter an amount, pick a rate, and get the VAT-exclusive value, the VAT amount, and the VAT-inclusive total clearly broken down.
Bangladesh VAT Calculator
Add or extract VAT using official NBR rates under the VAT & SD Act, 2012.
Bangladesh's standard VAT rate is 15% under the Value Added Tax and Supplementary Duty Act, 2012. Reduced ("truncated") rates of 1.5%, 2%, 2.4%, 4.5%, 5%, 7.5% and 10% apply to specific goods and services as prescribed by NBR. This tool is for general calculation only — always confirm the correct rate for your specific supply with the latest NBR SRO or a VAT professional.
What Is VAT in Bangladesh?
Value Added Tax (VAT) is an indirect tax charged on the supply of most goods and services in Bangladesh, collected at each stage of the supply chain and ultimately borne by the final consumer. It is administered by the National Board of Revenue (NBR) under the Value Added Tax and Supplementary Duty Act, 2012. Registered businesses charge VAT on their sales, offset the VAT they pay on inputs, and remit the difference to the government.
The Standard VAT Rate and Truncated Rates
The standard VAT rate in Bangladesh is 15%, applied to most goods and services. Alongside it, the NBR prescribes a set of reduced or truncated rates for specific goods and services, commonly 1.5%, 2%, 2.4%, 4.5%, 5%, 7.5%, and 10%. These lower rates apply to designated sectors as set out in the Act and in NBR SROs. Always confirm the correct rate for your specific supply, as applying the wrong one changes your liability. This calculator lets you select the standard rate or any truncated rate with a single tap.
VAT-Exclusive vs VAT-Inclusive
Understanding these two terms is the key to using VAT correctly. A VAT-exclusive amount is the price before VAT is added — the base value of the supply. A VAT-inclusive amount is the price with VAT already built in, which is what a customer actually pays. This calculator handles both directions: it can add VAT to an exclusive price, or work backwards to extract the VAT from an inclusive price.
How to Add VAT
To add VAT to a VAT-exclusive amount, multiply the amount by the VAT rate to get the VAT, then add it back. With a 15% rate, the VAT on a ৳1,000 exclusive price is ৳150, giving a VAT-inclusive total of ৳1,150. The formula is: VAT = exclusive amount × rate; inclusive amount = exclusive amount + VAT.
How to Remove VAT
To remove VAT from a VAT-inclusive amount, divide by one plus the rate to recover the exclusive value, then subtract it to find the VAT. From a ৳1,150 inclusive price at 15%, the exclusive amount is ৳1,150 ÷ 1.15 = ৳1,000, and the VAT is ৳150. The formula is: exclusive amount = inclusive amount ÷ (1 + rate); VAT = inclusive amount − exclusive amount. This is essential when a price already includes VAT and you need to report the tax portion separately.
Who Must Register for VAT
Businesses crossing the prescribed annual turnover thresholds must register for VAT with the NBR and obtain a Business Identification Number (BIN). Smaller businesses below the VAT registration threshold but above the enlistment threshold may instead pay turnover tax at a reduced rate. Registered businesses must issue a VAT challan (Mushak 6.3) for taxable supplies and file regular VAT returns. Confirm your current obligations with the NBR, as thresholds and procedures are set by the Act and updated through SROs.
Why Use a VAT Calculator
Whether you are issuing an invoice, checking a supplier’s bill, pricing a product, or preparing a VAT return, getting the VAT figure exactly right matters for compliance and for your margins. Manually separating VAT from an inclusive price is a common source of error. This tool removes that risk by applying the official rates precisely in both directions.
Frequently Asked Questions
The standard VAT rate is 15%, applied to most goods and services under the Value Added Tax and Supplementary Duty Act, 2012. The NBR also prescribes truncated rates of 1.5%, 2%, 2.4%, 4.5%, 5%, 7.5%, and 10% for specific goods and services.
To add VAT, multiply the VAT-exclusive amount by the rate and add it to the price. At 15%, ৳1,000 plus VAT becomes ৳1,150. The calculator does this instantly for any rate.
Divide the VAT-inclusive amount by one plus the rate. At 15%, ৳1,150 ÷ 1.15 = ৳1,000 exclusive, with ৳150 of VAT. This is how you separate the tax portion from a price that already includes VAT.
A VAT-exclusive amount is the price before VAT. A VAT-inclusive amount is the price with VAT already added, which is what the customer pays. The difference between them is the VAT.
Truncated rates are reduced VAT rates below the standard 15%, set by the NBR for specific goods and services. They include 1.5%, 2%, 2.4%, 4.5%, 5%, 7.5%, and 10%. The correct rate depends on the nature of the supply.
Businesses exceeding the prescribed annual turnover threshold must register for VAT and obtain a Business Identification Number (BIN). Those below it but above the enlistment threshold may pay turnover tax instead. Confirm your status with the NBR.
A Mushak is a prescribed VAT form under the VAT & SD Act 2012. The Mushak 6.3 is the VAT invoice or challan that registered businesses must issue for taxable supplies, showing the value and the VAT charged.