VAT Calculator

What is VAT?

Value added tax (VAT) is a tax on the sale of goods and services, collected by the seller at each step of the supply chain and passed to the government. The customer pays it as part of the price. In Bangladesh it is set by the VAT and Supplementary Duty Act 2012 and collected by the National Board of Revenue, with a standard rate of 15%.

Formulas

• Adding VAT: VAT = price × rate ÷ 100, total = price + VAT
• Removing VAT: price before VAT = total ÷ (1 + rate ÷ 100)

Worked example

A product priced at 10,000.00 before VAT, at 15%, carries 1,500.00 of VAT, so the customer pays 11,500.00.

How to use the VAT calculator

1. Enter your figures: amount and VAT rate.
2. Read the result. It updates as you type, so there is no button to press.
3. Try other numbers to compare scenarios. Reset brings back the example values.

Getting it right

• To take VAT out of a total, divide by 1 plus the rate — do not just subtract the rate as a percentage. 15% off 11,500 is 9,775, but the price before VAT is 10,000.
• Some goods and services are charged at reduced rates or are exempt. Check the current schedule for what you sell.
• Other common rates: 5% in the United Arab Emirates, 15% in Saudi Arabia, 20% in the United Kingdom. India uses GST instead — see the GST calculator.

Frequently asked questions

How do I calculate 15% VAT on a price?

Multiply the price by 0.15 to get the VAT, or by 1.15 to get the total. 10,000 × 1.15 = 11,500, of which 1,500 is VAT.

How do I remove VAT from a total?

Divide the total by 1 plus the rate. For 15%, 11,500 ÷ 1.15 = 10,000 is the price before VAT, and the VAT is 1,500.

Is VAT the same as sales tax?

Both are charged on sales, but VAT is collected at every stage of production and distribution, with businesses reclaiming the VAT they paid on inputs. A sales tax is usually charged only once, on the final sale.