How to Calculate VAT in Türkiye
Region: TürkiyeHesaplayıcı2 min read
Short answer
VAT (KDV) in Türkiye is the net amount multiplied by the VAT rate, and the gross amount is the net amount plus the VAT. The general rate is 20%; the reduced rates are 10% and 1%. For example, 20% VAT on 10,000 TRY is 2,000 TRY, so the gross amount is 12,000 TRY.
Formula
VAT = net amount × rate
Gross amount = net amount + VAT
Net amount = gross amount / (1 + rate)
- Net amount: the price without VAT
- Gross amount: the price with VAT
- Rate: the VAT rate as a decimal; 0.20 for 20%, 0.10 for 10%, 0.01 for 1%
Step-by-step example
A service with a net price of 10,000 TRY, at 20%:
- Find the VAT: 10,000 × 20% = 2,000 TRY.
- Find the gross amount: 10,000 + 2,000 = 12,000 TRY.
The same calculation the other way, taking VAT out of a gross amount of 12,000 TRY:
- Find the net amount: 12,000 / 1.20 = 10,000 TRY.
- Find the VAT: 12,000 − 10,000 = 2,000 TRY.
VAT at each rate
On 1,000 TRY, in both directions:
| Rate | VAT on a net 1,000 TRY | Gross amount | Net amount in a gross 1,000 TRY | VAT inside it |
|---|---|---|---|---|
| 20% | 200.00 TRY | 1,200.00 TRY | 833.33 TRY | 166.67 TRY |
| 10% | 100.00 TRY | 1,100.00 TRY | 909.09 TRY | 90.91 TRY |
| 1% | 10.00 TRY | 1,010.00 TRY | 990.10 TRY | 9.90 TRY |
Amounts are rounded to the kuruş. When VAT is taken out, the net amount is rounded first and the VAT is the rest, so the two add up to the gross amount.
A common mistake: taking 20% of the gross amount
On an invoice of 1,000 TRY with VAT included, the VAT is not 200 TRY. 200 TRY is the VAT on a net amount of 1,000 TRY. VAT is charged on the net amount, so divide the gross amount by 1.20 first: the net amount is 833.33 TRY and the VAT inside it is 166.67 TRY.
The legal basis of the rates
The general rate is 20% and the reduced rates are 10% and 1%. They have applied since 10 July 2023 (VAT Law no. 3065 art. 28; Presidential Decision 7346, Official Gazette 7 July 2023). The lists attached to the decision say which rate applies to which good or service; use the rate on your invoice.
With VAT withholding (tevkifat), the buyer pays part of the VAT to the tax office instead of the seller. This is separate from income tax withholding, and the VAT calculator does not include it.
Worked example: Adding 20% VAT to 10,000 TRY
VAT amount
2,000 TRY
- Amount without VAT
- 10,000 TRY
- Amount with VAT
- 12,000 TRY
Step by step
VAT amount
VAT = net amount × 20%
VAT = 10,000 × 20% = 2,000
Amount with VAT
gross amount = net amount + VAT
gross amount = 10,000 + 2,000 = 12,000