Calculate the VAT on your amount quickly with the default 15% VAT rate.
The **Value Added Tax (VAT)** in Bangladesh is a consumption tax levied on goods and services. The standard VAT rate is **15%**, which applies to most goods and services. However, the Finance Bill 2024 proposes increases in VAT rates for certain services, including **amusement parks and tour operators**, reflecting the evolving tax landscape.
The VAT rates are as follows:
**Key VAT Exemptions**: - **VAT exemption for imports**: Certain materials used for manufacturing **polyethylene terephthalate (PET) chips** and **aircraft engine manufacturing** are exempt from VAT, as proposed in the Finance Bill 2024.
VAT in Bangladesh is a **tax on consumption**. It is collected at each stage of the production and distribution process. However, businesses can offset the VAT they pay on their own purchases by deducting it from the VAT they collect from customers. This ensures the tax burden is ultimately passed on to the final consumer.
For example: - If a supplier sells goods for **BDT 1000**, they charge **BDT 150** as VAT (15%). - When the goods are sold to a retailer for **BDT 2000**, the retailer charges **BDT 300** as VAT. - The retailer will pay the government **BDT 150** (the difference between the VAT charged to the customer and the VAT paid on the goods they bought).
In Bangladesh, businesses are required to register for VAT if their annual taxable turnover exceeds **BDT 3 million**. Smaller businesses may qualify for simplified VAT registration, but they are still required to collect and report VAT on taxable sales.
Some goods and services are exempt from VAT or are subject to a **0% VAT rate**. Key exemptions include:
The formula for calculating VAT in Bangladesh is:
VAT = Amount * VAT Rate
To calculate the VAT on a given amount, multiply the price of the goods or services by the applicable VAT rate (15% for most items in Bangladesh).
**Example**:
If you are purchasing a product worth **BDT 500**, the VAT would be:
500 * 15% = BDT 75
The total cost for the product will be **BDT 575**.
To simplify VAT calculations, businesses and individuals in Bangladesh often use online **VAT calculators**. These tools can automatically compute the VAT amount based on the entered price, streamlining the process.
A: You can use our **Bangladesh VAT Calculator** to quickly calculate VAT on any product or service in Bangladesh. Simply enter the amount and the default VAT rate of **15%**, and the tool will show you the VAT amount and the total cost after VAT.
A: The standard VAT rate in Bangladesh is **15%** for most goods and services. Some industries may have different VAT rates or exemptions.
A: To calculate VAT, multiply the price of the product by the VAT rate (15%). For example, for a product priced at **BDT 100**, the VAT would be **100 * 15% = BDT 15**. The total price after VAT would be **BDT 115**.
A: Yes! The Bangladesh VAT calculator allows you to calculate VAT for multiple items by entering each item’s price and applying the VAT rate to each one separately, or adding them together for a cumulative VAT calculation.
A: The default VAT rate in Bangladesh is **15%**, but the calculator can be adjusted to different VAT rates (e.g., for industries with reduced VAT rates). You can manually change the VAT rate in the calculator to suit your needs.
A: VAT is a consumption tax applied to most goods and services in Bangladesh. It is used by the government to fund public services and infrastructure projects, contributing to the overall economic growth and development of the country.
A: VAT is applicable to most goods and services in Bangladesh, but there are exemptions and zero-rated items, such as **exports**, **certain financial services**, and **basic foodstuffs**.