VAT Calculation

FAQ

Frequently asked questions about VAT Calculation.

How to Calculate Excluding VAT?

Calculating excluding VAT is the process of finding the VAT amount and the VAT included price of a good or service based on its tax-free price. To do this, calculate the net amount by the VAT rate (%10 için 0.10, %20 için 0.20 etc.) is enough to multiply. For example, if 10% VAT is to be added to a product worth 1,000 TL, 1.000 * 0.10 = 100 TL The VAT amount is found and the price including VAT is 1,100 TL.

How to Calculate Including VAT?

Calculating with VAT is the process of finding the net amount and VAT amount in a price including VAT. For this, the total amount including VAT is 1 + (VAT Rate / 100) You need to divide by the value obtained with the formula. For example, to find the VAT-free price of a product with 20% VAT and a price of 600 TL, you would divide 600 by 1.20. The resulting 500 TL is the net price of the product without VAT.

What are the products subject to 10% VAT?

In Türkiye, the reduced VAT rate of 10% (formerly 8%) generally applies to basic goods and some services. The main products and services include:

  • Some of the food items (wholesale deliveries)

  • Entry fees for cinema, theatre, opera, operetta and ballet

  • Accommodation services such as hotels, motels, and guesthouses

  • Food and beverage services (excluding alcoholic beverages)

  • Products such as textiles, apparel, bags and shoes

Yüzde (%20) KDV Uygulanan Ürünler Nelerdir?

The 20% VAT rate is the general VAT rate and applies to all goods and services that do not fall under the reduced rate lists of 1% and 10%. This category is quite broad. Key examples include:

  • Electronic products (phone, computer, television)

  • white goods

  • furniture

  • Automobiles and other motor vehicles

  • Alcoholic beverages and tobacco products

  • cosmetic products

  • Communication services (internet, telephone bills)

VAT Calculation

What is VAT?

Value Added Tax (VAT) is a consumption tax paid by the buyer to the seller on deliveries of goods and services in Türkiye. This tax, encountered in almost all commercial activities, is levied on the "value added" added at each stage of the product or service's production process until it reaches the end consumer.

The ultimate taxpayer is always the end consumer. Businesses deduct the VAT they collect from their customers from the VAT they pay on their own purchases, and declare and pay the remaining amount to the government.

There are basically three different VAT rates applied in Türkiye: 1%, 10% and 20%.

These rates vary depending on the type of product and service. VAT calculation This process is critical for businesses to ensure the accuracy of their financial records and for consumers to know the exact amount they will pay.

What is VAT?
VAT Calculation

How is VAT Calculated?

VAT calculation The process basically proceeds in two scenarios: adding tax to the price without VAT or subtracting tax from the price with VAT.

1. Adding VAT to the Price: If you have the net (tax-free) amount of the product or service, adding VAT is quite simple. You calculate the VAT amount by multiplying the net amount by the VAT rate (e.g., 0.20 for 20%, 0.10 for 10%).

For example, 20% VAT on a net amount of 1,000 TL is 1,000 TL * 0.20 = 200 TL. By adding this amount to the net price, you arrive at a final price including VAT of 1,200 TL.

2. Subtracting VAT from the price: If the price you have is VAT (gross) and you want to find the tax-free price, you need to divide.

Simply divide the total amount including VAT by the coefficient determined by the tax rate (for example, 1.20 for 20% VAT, 1.10 for 10% VAT).

How is VAT Calculated?