Global
EMI Loan Calculator
Monthly instalment, total interest & amortization for any loan.
🇧🇩 NBR Standard Rate · Add & Remove VAT · Instant Results
VAT Calculator Bangladesh (NBR 15%)
Add or remove Bangladesh's standard 15% NBR VAT (মূল্য সংযোজন কর) from any price. Instant results — no signup required.
📌 Bangladesh VAT Quick Reference
Standard Rate
15%
Authority
NBR Bangladesh
Add VAT
Price × 1.15
Remove VAT
Price ÷ 1.15
How to Use
- 1Select your mode: choose 'Add VAT' if your price is ex-VAT (before tax), or 'Extract VAT' if your price already includes VAT.
- 2Choose your currency from the dropdown (default: BDT ৳).
- 3Enter the price amount in the input field.
- 4Select the applicable VAT rate — the NBR standard 15% is pre-selected. Choose a reduced rate (10%, 7.5%, 5%) or enter a custom rate if needed.
- 5Results update instantly: Price Without VAT, VAT Amount, and Price With VAT are all shown.
- 6Use the result to verify invoices, compare vendor quotes, or prepare pricing.
Bangladesh VAT Formula & How It Works
➕ Adding VAT
VAT Amount = Ex-VAT Price × (Rate ÷ 100) Inclusive Price = Ex-VAT Price × (1 + Rate ÷ 100) Standard (15%): Inclusive Price = Ex-VAT Price × 1.15
➖ Extracting VAT
Ex-VAT Price = Inclusive Price ÷ (1 + Rate ÷ 100) VAT Amount = Inclusive Price − Ex-VAT Price Standard (15%): Ex-VAT Price = Inclusive Price ÷ 1.15
⚠ Common Mistake:Do not subtract 15% directly from an inclusive price to extract VAT. BDT 1,150 − 15% = BDT 977.50 ✗ | BDT 1,150 ÷ 1.15 = BDT 1,000 ✓
Example Calculation for Bangladesh VAT
➕ Adding 15% VAT
Ex-VAT Price৳ 1,000.00
VAT (15%): 1,000 × 0.15৳ 150.00
Inclusive Price৳ 1,150.00
➖ Extracting 15% VAT
Inclusive Price৳ 1,150.00
Ex-VAT: 1,150 ÷ 1.15৳ 1,000.00
VAT Component৳ 150.00
Common BD VAT Rates (NBR)
15% — Standard (most goods & services)10% — Hotels, AC restaurants, contractors7.5% — Recruiting agents, C&F agents5% — Unprocessed agricultural produce0% — Exports, essential medicines, basic food
VAT Tips for Bangladesh
- 1
Always Verify VAT Inclusion Before Comparing Prices
A price of BDT 1,000 ex-VAT becomes BDT 1,150 inclusive — a 15% difference that materially affects procurement decisions. Always ask vendors whether their quote is VAT-inclusive or exclusive.
VAT-Inclusive = Ex-VAT Price × 1.15
- 2
Internet & Telecom Bills Include 15% VAT
Broadband, mobile data, and telecom services in Bangladesh attract the standard 15% VAT. The advertised plan rate is typically ex-VAT; your invoice will show the higher inclusive total.
Billed Amount = Advertised Rate × 1.15
- 3
Restaurant Bills: Confirm the Applicable Rate
AC restaurants and hotels charge 10% VAT (reduced rate) — not 15%. Non-AC eateries may operate under the turnover scheme with no VAT. Always check your bill before paying.
Total (AC Restaurant) = Food Bill × 1.10
- 4
Professional Services Are Subject to 15% VAT
Legal, accounting, consulting, and most B2B professional services attract the standard 15% rate. When requesting quotes, always clarify whether the fee is VAT-inclusive or exclusive.
Inclusive Fee = Ex-VAT Fee × 1.15
- 5
Exported Goods Are Zero-Rated (0% VAT)
Goods physically exported from Bangladesh carry 0% VAT, making Bangladeshi products more competitive internationally. Importers pay VAT and customs duty at the port of entry.
Export VAT = 0% · Import VAT assessed at customs entry
- 6
Claim Input Tax Credit to Reduce Net VAT Payable
VAT-registered businesses can deduct VAT paid on business inputs from VAT collected on sales. Maintain Mushak-6.3 purchase invoices to support every claim. Unclaimed credits are a direct cash-flow cost.
Net VAT Payable = Output VAT − Input VAT Credit
Frequently Asked Questions about VAT Bangladesh
What is the VAT rate in Bangladesh?
Bangladesh's standard VAT (মূল্য সংযোজন কর – Musok) rate is 15%, set by the National Board of Revenue (NBR) under the VAT and Supplementary Duty Act, 2012. Reduced rates of 5%, 7.5%, and 10% apply to specific sectors such as essential goods, certain services, and hospitality. Some goods and services are zero-rated (0%) or fully exempt.
Why can't I just subtract 15% to remove VAT from a price?
Because 15% VAT was calculated on the original ex-VAT price, not on the inclusive price. Subtracting 15% from BDT 1,150 gives BDT 977.50 — which is wrong. The correct method is to divide by 1.15: BDT 1,150 ÷ 1.15 = BDT 1,000. The same logic applies to all VAT rates — always divide by (1 + rate), never subtract the percentage.
Who collects VAT in Bangladesh?
VAT is administered by the National Board of Revenue (NBR). Businesses with annual turnover above the registration threshold (BDT 30 lakh for turnover tax, BDT 80 lakh for full VAT) must register, collect VAT on taxable sales, and remit it to the government via Mushak forms. Consumers ultimately bear the VAT cost embedded in the final price.
Are all goods and services subject to 15% VAT?
No. Basic foodstuffs, agricultural inputs, life-saving medicines, and certain educational services are VAT-exempt or zero-rated (0%). Hospitality and some services attract reduced rates of 10% or 7.5%. Some sectors face supplementary duty instead of standard VAT. The 15% rate applies to most commercial goods and services unless a specific exemption or reduced rate is gazetted by NBR.
What is input tax credit and who can claim it?
Input tax credit allows VAT-registered businesses to offset VAT paid on purchases (input VAT) against VAT collected on sales (output VAT), so tax is only paid on the value added at each stage — not on the full price repeatedly. Only businesses holding a valid BIN (Business Identification Number) and supported by Mushak-6.3 purchase invoices can claim this credit. Unclaimed input VAT is a real cash-flow cost.
What are the reduced VAT rates in Bangladesh?
NBR gazetted reduced rates include: 10% for AC hotels, restaurants, and certain contractors; 7.5% for recruiting agents and C&F agents; 5% for some unprocessed agricultural goods. Exports are zero-rated at 0%. Essential medicines, basic foodstuffs, and some educational services are fully VAT-exempt. Always verify the current rate for your specific product or service with NBR or a tax advisor.
What is the VAT registration threshold for businesses in Bangladesh?
Businesses with annual turnover above BDT 80 lakh must register for full VAT and file monthly Mushak returns. Businesses with turnover between BDT 30 lakh and BDT 80 lakh may qualify for the turnover tax scheme at a simplified flat rate. Below BDT 30 lakh, no VAT registration is required. Thresholds are subject to revision in each national budget.
Bangladesh VAT References & Official Sources
- ↗National Board of Revenue (NBR) — VAT Wing
- ↗VAT and Supplementary Duty Act, 2012 (Gazette)
- ↗NBR — VAT Registration & BIN Portal
- ↗Bangladesh Government Gazette — VAT SROs
VAT rates and thresholds are subject to annual budget revisions. Always verify current rates with the National Board of Revenue or a qualified tax advisor.