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VAT Calculator Bangladesh — 15% Standard, Multi-Rate (Add / Strip)

Bangladesh VAT calculator for 15%, 7.5%, and 5% rates. Add or extract VAT from net or gross using the correct divisor per rate.

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VAT — Bangladesh

15% standard rate

BDT

Net (pre-tax)

BDT 1,000

VAT amount

BDT 150

Gross (incl. tax)

BDT 1,150

BD flagBangladesh: Bangladesh standard VAT is 15%. Multiple reduced rates (10%, 7.5%, 5%, 2%) exist for specific sectors per the VAT and SD Act 2012.

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About this tool

Bangladesh has three positive VAT rates, not one

Most countries apply a single VAT rate. Bangladesh does not. A single invoice can contain lines at 15%, 7.5%, and 5%, each requiring its own divisor to extract VAT or work backwards from a total, with exports zero-rated on top of that.

RateApplies toDivisor
15%Standard supplies1.15
7.5%Services, restaurants1.075
5%IT-enabled services, essentials1.05
0%Exports1.00

Working backwards: the divisor trap

To extract VAT from a total, divide by one plus the rate. Standard example: 11,500 ÷ 1.15 = BDT 10,000 net and BDT 1,500 of VAT. For restaurants at 7.5%: 10,750 ÷ 1.075 = BDT 10,000 net and BDT 750 VAT. Reach for the wrong divisor and the error runs the other way from what you might expect: dividing a 5%-rated total of BDT 10,500 by 1.15 returns BDT 9,130 instead of BDT 10,000, understating the net by roughly 8.7% and misstating the VAT you can recover on that line.

Rate selection is a documentation problem

The NBR taxes supplies, not businesses. A single company can issue invoices at three rates because each rate attaches to what is sold. Restaurants at 7.5%, IT services at 5%, standard at 15%. Misclassifying a line misstates both output tax and your customer's input rebate.

Rates are set by the NBR and change. Confirm current rates before filing. See also Salary Calculator Bangladesh and Income Tax Calculator Bangladesh.

What this tool does not do

This tool adds VAT to net and extracts VAT from totals. It computes arithmetic only. It does not classify supplies between rates, does not handle VAT withheld at source, and does not cover registration or turnover tax. Consult the NBR for those.

How to use the VAT Calculator Bangladesh 🇧🇩

Takes about a minute. No signup, no download, your data stays in your browser.

  1. 1
    Open the tool. Scroll up to the VAT Calculator Bangladesh 🇧🇩 above — it loads instantly in your browser, no install needed.
  2. 2
    Enter your values. The fields come pre-filled with realistic defaults so you can see how it works — replace them with your own numbers.
  3. 3
    Read the result. The output updates instantly. Copy or share it — nothing is uploaded to a server, everything stays on your device.

Frequently asked questions

Common questions about the VAT Calculator Bangladesh 🇧🇩.

What is the VAT rate in Bangladesh?

Bangladesh has four rates: 15% standard; 7.5% on selected services and restaurants; 5% on IT-enabled services and certain essentials; and 0% on exports. The rate depends on what is sold. A single invoice can contain lines at multiple rates, so there is no single VAT rate.

Is there VAT on restaurants in Bangladesh?

Yes. Restaurant supplies are taxed at the reduced rate of 7.5%, not the standard 15%. This means the divisor to extract VAT is 1.075, not 1.15. A restaurant invoice of BDT 10,750 includes BDT 750 of VAT and BDT 10,000 net.

How do I calculate VAT backwards from a total in Bangladesh?

Divide the total by one plus the rate as a decimal. For 15%, divide by 1.15. For 7.5%, divide by 1.075. For 5%, divide by 1.05. Example: BDT 11,500 at 15% gives 11,500 ÷ 1.15 = BDT 10,000 net and BDT 1,500 of VAT. Applying too large a divisor understates the net, and too small a one overstates it.

Is there VAT on IT services in Bangladesh?

Yes. IT-enabled services are taxed at 5%, a reduced rate below the standard 15%. This means exports, 5% IT services, 7.5% restaurant supplies, and 15% standard supplies can all appear on the same invoice, each with its own divisor for VAT extraction.

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