VAT calculator: gross and net amounts

Formulas

Adding VAT (from a net amount):

• VAT = net × rate
• Gross = net + VAT

Extracting VAT (from a gross amount):

• Net = gross ÷ (1 + rate)
• VAT = gross - net

Write the rate as a decimal: 0.20 for 20%, 0.10 for 10%, 0.01 for 1%. The calculator rounds results to the cent.

Worked examples

The last row shows the effect of rounding: 1,000 ÷ 1.20 = 833.333…, which rounds to 833.33 TL, and the VAT is the difference, 166.67 TL.

Which rate applies when?

Under Article 28 of the VAT Law, the general rate for taxable transactions is set in the law, and the President may change it and set different rates for goods and services. In practice three rates apply today: 1%, 10% and 20%. Which item falls under which rate is set in lists annexed to presidential decisions and changes from time to time, so confirm an item’s rate from the current list or with your accountant rather than from this page.

On an invoice, VAT is calculated per line

An invoice can carry items at different rates. The correct method is to calculate VAT on each line and total it by rate. Applying one rate to the invoice total gives the wrong answer on mixed-rate invoices.

In the bookkeeping module, sales invoices are issued with VAT per line and each invoice creates a journal entry automatically. At month end, output and input VAT appear by rate in the VAT report. For the checks, see the month-end close guide.

Returns and withholding

• Return invoice: The VAT on a returned item is calculated at the original invoice’s rate, in the opposite direction.
• Withholding (tevkifat): In some transactions part of the VAT is declared by the buyer as the responsible party instead of the seller. The calculator gives the total VAT; the withheld share depends on the transaction type and should be checked with your accountant.