What Is a VAT-Inclusive Price?
Definition
VAT-Inclusive Price: The total price with value added tax (VAT) included: the VAT-exclusive price plus the VAT. The VAT inside it is found by dividing the price by (1 + rate).
A VAT-inclusive price is the total price with value added tax included: the price without VAT plus the VAT. It is what the buyer pays and usually the price shown to consumers. To find the VAT inside it, divide the price by (1 + rate); multiplying the price by the rate gives a wrong result.
Where it appears in the formulas
VAT-exclusive price = VAT-inclusive price / (1 + rate) and VAT = VAT-inclusive price − VAT-exclusive price. The VAT calculator takes the VAT out of an inclusive price at the rate you choose.
In Türkiye
VAT is KDV in Türkiye: the general rate is 20%, the reduced rates 10% and 1%. At 20%, an inclusive price of 3,600 TRY is 3,000 TRY without VAT plus 600 TRY VAT. At 10%, the same 3,600 TRY is 3,272.73 TRY without VAT.