What is VAT (Value Added Tax)?
Value Added Tax (VAT) is a consumption tax levied on the "added value" created at each stage from production to final consumption of goods and services. In Turkey, VAT is regulated by the Value Added Tax Law No. 3065.
VAT Rates in Turkey
Three different VAT rates are applied in Turkey:
- 1% — Basic food items (bread, milk, eggs), residential deliveries
- 10% — Processed foods, health services, hotel services
- 20% — General rate; electronics, clothing, services, etc.
How to Calculate VAT?
VAT calculation can be done in two ways:
Calculating VAT-Inclusive Price from VAT-Exclusive Price
Formula: VAT-Inclusive Price = VAT-Exclusive Price × (1 + VAT Rate / 100)
Example: A product worth 1,000 TL with 20% VAT → 1,000 × 1.20 = 1,200 TL
Calculating VAT-Exclusive Price from VAT-Inclusive Price
Formula: VAT-Exclusive Price = VAT-Inclusive Price / (1 + VAT Rate / 100)
Example: Removing VAT from a 1,200 TL inclusive price → 1,200 / 1.20 = 1,000 TL
Who Must Pay VAT?
In Turkey, individuals and organizations engaged in commercial, industrial, agricultural activities and liberal professions who deliver goods and provide services must be registered as VAT taxpayers.
What is VAT Refund?
Businesses that export goods or make transactions subject to reduced rates can receive the VAT they paid as a refund from the government. VAT refund requests are made to the Revenue Administration.
You can use the VAT Calculator on Hesaplabs to get accurate results in seconds.