What is VAT and How is it Calculated?
VAT (Value Added Tax) is an indirect consumption tax applied to goods and services in Turkey. Applied at every stage from production to consumption, it is ultimately paid by the end consumer.
VAT Rates in Turkey (2024)
%1
Reduced Rate
Basic food, housing (under 150m²)
%10
Intermediate Rate
Healthcare services, some foods
%20
Standard Rate
Electronics, textiles, services
VAT Calculation Formulas
To Add VAT:
Incl. = Excl. × (1 + Rate/100)
Example: 1000 × 1.20 = 1200 ₺
To Remove VAT:
Excl. = Incl. ÷ (1 + Rate/100)
Example: 1200 ÷ 1.20 = 1000 ₺
Frequently Asked Questions
What is VAT?
VAT (Value Added Tax) is an indirect tax added at every stage from production to consumption, ultimately paid by the consumer. The standard rate in Turkey is 20%.
How to calculate price excluding VAT?
Divide the VAT-inclusive price by (1 + VAT rate) to find the price without VAT. Example: 1200 TL VAT-inclusive → 1200 ÷ 1.20 = 1000 TL excluding VAT.
How to calculate price including VAT?
Add the VAT amount to the price excluding VAT. Example: 1000 TL + (1000 × 0.20) = 1000 + 200 = 1200 TL including VAT.
What are the VAT rates in Turkey?
The common VAT rates in Turkey are: 1% (certain food & housing), 10% (health, some foods), and 20% (general rate for electronics, clothing, etc.).
How to get a VAT refund?
VAT refunds are typically available for export activities or certain investments. Taxpayers can claim refunds by declaring paid VAT through the Revenue Administration.