VAT Calculator

How VAT is calculated

Adding VAT to a price

VAT = price excluding VAT × rate ÷ 100

Price including VAT = price excluding VAT + VAT

At 15%: ৳1,000 × 15 ÷ 100 = ৳150 of VAT, so the price including VAT is ৳1,150. In one step, multiply by 1.15.

Removing VAT from a VAT-inclusive price

VAT = price including VAT × rate ÷ (100 + rate)

Price excluding VAT = price including VAT − VAT

At 15%: ৳1,150 × 15 ÷ 115 = ৳150 of VAT, so the price before VAT is ৳1,000. In one step, divide by 1.15.

An example with paisa

Adding 15% to ৳2,499.50: 2,499.50 × 0.15 = 374.925, which rounds to ৳374.93 of VAT, so the price including VAT is ৳2,874.43.

Removing 15% from ৳1,000: 1,000 × 15 ÷ 115 = 130.434…, which rounds to ৳130.43 of VAT, so the price before VAT is ৳869.57.

Common mistake: taking 15% of the total

To remove VAT, many people take 15% of the price including VAT. That gives the wrong answer, because the 15% was charged on the price before VAT, which is smaller.

15% of ৳1,150 is ৳172.50, but the VAT inside ৳1,150 is only ৳150. Subtracting ৳172.50 would leave ৳977.50, not the real ৳1,000. Divide by 115 (100 + rate), not by 100.

VAT rates in Bangladesh

The standard VAT (মূসক) rate is 15% under the Value Added Tax and Supplementary Duty Act, 2012. It applies to most goods and services.

Some goods and services have reduced rates, such as 10%, 7.5% or 5% (lower rates also exist). Which rate applies depends on the item, so check NBR or your VAT invoice (challan). Choose “Custom rate” to enter any rate from 0 to 100.

This calculator only adds or removes VAT at one rate. It does not include supplementary duty (SD), advance tax, VAT deducted at source, fixed per-unit VAT, or VAT worked out on a tariff or truncated value instead of the price. Some products carry SD or use a different base. Businesses should follow NBR rules and their accountant.

How to use the calculator

1. Choose Add VAT (you have a price before VAT) or Remove VAT (the price already includes VAT).
2. Enter the price excluding VAT or the price including VAT, in Taka.
3. Choose the VAT rate: Standard 15%, a reduced rate, or Custom rate.
4. Select Calculate VAT to see the VAT, both prices and the formula with your numbers.

Amounts are rounded to the nearest paisa (half away from zero). The VAT is rounded first and the other figure is worked out from it, so the price excluding VAT plus the VAT always equals the price including VAT. Whole-Taka amounts are shown without paisa.

Sources

Standard rate of 15%: NBR VAT FAQ. Reduced rates of 1.5%, 2%, 2.4%, 4.5%, 5%, 7.5% and 10% for specific goods and services: PwC Worldwide Tax Summaries, Bangladesh (last reviewed 31 July 2026). Both checked on 28 October 2026. Rates can change with each budget; NBR’s current rules always decide.