VAT Calculator

Step-by-step

1. Enter the amount before VAT in 'Net amount'. If you're not sure whether your figure already includes VAT, check the invoice or quote first.
2. Enter the rate that applies to your product or service in the 'KDV %' field (KDV is the Turkish name for VAT). Rates differ by category and change from time to time, so confirm the current rate with the Turkish Revenue Administration (GİB) or your accountant.
3. Click 'Calculate'.
4. Read the VAT amount and the VAT-inclusive total together, and show both separately on your quote or invoice.

Example

A freelancer quotes 1,000 TL before VAT and, as an example, applies a 20 percent rate. The VAT is 200 TL and the total is 1,200 TL.

The common mistake goes the other way. To find the VAT inside a VAT-inclusive 1,200 TL, taking 20 percent of 1,200 gives 240 TL, which is wrong. Divide by 1.20 instead: 1,200 / 1.20 = 1,000 TL net, so the VAT is 200 TL. The tool starts from the net amount, so if you only have the gross figure, do that division first.

Calculating prices excluding and including VAT

To get a VAT-inclusive price, multiply the VAT-exclusive amount by (1 + rate); to get a VAT-exclusive price, divide the VAT-inclusive amount by (1 + rate). At 20 percent, 500 TL excluding VAT becomes 500 × 1.20 = 600 TL including VAT, and 600 TL including VAT is 600 ÷ 1.20 = 500 TL excluding it. At 10 percent, 1,100 TL including VAT is 1,100 ÷ 1.10 = 1,000 TL excluding VAT.

Things to keep in mind

• Rounding on amounts with cents can leave a one-cent difference from your invoicing software. On official documents, go with the software's figure.
• Withholding, exemptions or several rates on one invoice are beyond what this simple calculation covers.
• When you quote a price, always say whether it includes VAT. Unstated prices are a common source of disputes.
• Treat the result as a working estimate. For tax returns and bookkeeping, check with an accountant.