Most goods and services in Bangladesh carry 15% VAT. ৳1,000 plus 15% VAT is ৳1,150, and a VAT-inclusive price of ৳1,150 contains ৳150 VAT — about 13% of that price, not 15%.
What do you want to find
৳
= 1 thousand taka
VAT rate
%
Most goods and services: 15%. Some specified items have lower rates; check the rate on the invoice.
Supplementary duty (optional)
%
Applies to items like cigarettes, soft drinks, cosmetics. VAT is then charged on price + SD.
Total price with VAT
৳1,150
of which VAT ৳150
Price without VAT
৳1,000
VAT (15%)
৳150
Total price
৳1,150
Tax share of the total price
13.04%
Adding 15% VAT (৳150) to ৳1,000 gives a total of ৳1,150.
With supplementary duty, VAT is charged on price + SD.
VAT rates
Rate
Applies to
15%
Standard rate — most goods and services
10%, 7.5%, 5%, 2%
Reduced rates for specified goods and services (the list changes with budgets)
0% / exempt
Basic food items, exports and some other cases
Examples
Example 1: add 15% VAT
Price ৳2,500, VAT 2,500 × 15% = ৳375
Total ৳2,875
Example 2: VAT inside a VAT-inclusive price
VAT-inclusive price ৳11,500 at 15%
Price before VAT 11,500 ÷ 1.15 = ৳10,000
VAT ৳1,500
Example 3: 3 items at 7.5%
৳200 each, ৳600 in all
VAT 600 × 7.5% = ৳45, total ৳645
What to know in Bangladesh
VAT is মূসক (MUSAK) in Bangla: মূল্য সংযোজন কর.
Check the receipt: a registered seller’s receipt shows the VAT registration number (BIN) and the VAT amount separately.
Rates can change every budget: each June some items’ VAT or supplementary duty goes up or down. The rates here follow the last verified date.
More: why taking 15% off a VAT-inclusive price is wrong
VAT is charged on the price before VAT, not on the VAT-inclusive price. Taking 15% (৳172.50) off ৳1,150 removes too much. The correct VAT is 15/115 of the inclusive price, about 13.04%.
Likewise the VAT share of an inclusive price is 10/110 (≈9.09%) at 10%, 7.5/107.5 (≈6.98%) at 7.5%, and 5/105 (≈4.76%) at 5%. The calculator shows this as “Tax share of the total price”.
Frequently asked questions
What is the VAT rate in Bangladesh?
The standard rate under the VAT and Supplementary Duty Act 2012 is 15%. Some specified goods and services have reduced rates of 10%, 7.5%, 5% or 2%. Which items get which rate changes with almost every budget, so check the rate on the invoice.
What is the formula to calculate VAT?
To add VAT: VAT = price × rate ÷ 100, e.g. 15% of ৳1,000 = ৳150. To find VAT inside a VAT-inclusive price: VAT = price × rate ÷ (100 + rate), e.g. ৳1,150 × 15 ÷ 115 = ৳150.
How do I get the price before VAT?
Divide the VAT-inclusive price by (1 + rate). At 15%, divide by 1.15: ৳1,150 ÷ 1.15 = ৳1,000. Taking 15% straight off ৳1,150 gives ৳977.50, which is wrong.
How is VAT calculated when there is supplementary duty?
Supplementary duty is charged on the price first, then VAT is charged on price + SD. For ৳1,000 with 10% SD: SD ৳100, then 15% VAT on ৳1,100 = ৳165, total ৳1,265.
What is the difference between VAT and income tax?
VAT is an indirect tax you pay with the price of goods or services; the seller deposits it with the government. Income tax is a direct tax on your yearly income. See our income tax calculator for that.