What Is VAT (Value Added Tax)?
Definition
VAT (Value Added Tax): A tax on the supply of goods and services that is added to the price and finally paid by the consumer. It is a percentage of the net price, so it is taken out of a gross price by division, not by multiplication.
VAT (value added tax) is a tax on goods and services, added to the price and paid in the end by the consumer. The reader meets it on every invoice and price tag. VAT is a share of the net price, not of the gross: adding it multiplies the net amount, taking it out divides the gross amount.
Where it appears in the formulas
Adding VAT: VAT = net amount × rate. Taking VAT out: net amount = gross amount / (1 + rate), and VAT is the difference. The VAT calculator does both; the real estate commission calculator adds VAT to the commission at the general rate.
In Türkiye
VAT is KDV (katma değer vergisi) in Turkish. Under VAT Law no. 3065 and Presidential Decision 7346, the general rate has been 20% since 10 July 2023, with reduced rates of 10% and 1%. The real estate commission calculator adds 20% VAT to the commission.