How Do You Calculate VAT? VAT-inclusive and VAT-exclusive Calculations
Last checked against regulations: October 3, 2026
Short answer
Multiply the VAT-exclusive amount by (1 + VAT rate) to get the VAT-inclusive amount; divide the VAT-inclusive amount by (1 + VAT rate) to get the VAT-exclusive amount. Use 1.20 for 20%, 1.10 for 10% and 1.01 for 1%.
Contents
VAT (KDV) is calculated with two basic formulas: to go from the VAT-exclusive amount to the VAT-inclusive amount, you multiply the amount by (1 + VAT rate); to go back from the VAT-inclusive amount to the VAT-exclusive amount, you divide by the same number. The VAT amount is the difference between the two figures. The VAT rates applied in Türkiye since July 10, 2023 are 1%, 10% and 20%.
VAT calculation formulas
| Operation | Formula | Example for 20% |
|---|---|---|
| Exclusive to inclusive | Inclusive = Exclusive × (1 + rate) | 500.00 × 1.20 = 600.00 |
| Inclusive to exclusive | Exclusive = Inclusive ÷ (1 + rate) | 600.00 ÷ 1.20 = 500.00 |
| Tax from the exclusive amount | Tax = Exclusive × rate | 500.00 × 0.20 = 100.00 |
| Tax from the inclusive amount | Tax = Inclusive × rate ÷ (1 + rate) | 600.00 × 0.20 ÷ 1.20 = 100.00 |
There is also a shortcut for finding the tax from the inclusive amount: if the rate is 20%, divide the inclusive amount by 6; if it is 10%, divide by 11; if it is 1%, divide by 101. For example, 600.00 ÷ 6 = 100.00.
The most common mistake
You cannot find the VAT-exclusive amount by subtracting 20 percent from a VAT-inclusive 600.00 TL: 600.00 × 0.80 = 480.00 is wrong; the correct answer is 500.00. That is because the rate is a percentage of the VAT-exclusive amount, not the VAT-inclusive amount. For the same reason, 20 percent of the VAT-inclusive amount (120.00) is not the tax amount.
Sample table for 1%, 10% and 20%
The tables below use sample amounts. The first table shows the exclusive-to-inclusive calculation, the second the inclusive-to-exclusive calculation.
| Rate | Multiplier | Excl. taxes | Tax | Incl. taxes |
|---|---|---|---|---|
| 1% | 1.01 | 1,000.00 | 10.00 | 1,010.00 |
| 10% | 1.10 | 1,000.00 | 100.00 | 1,100.00 |
| 20% | 1.20 | 1,000.00 | 200.00 | 1,200.00 |
| Rate | Calculation | Excl. taxes | Tax |
|---|---|---|---|
| 1% | 1,200.00 ÷ 1.01 | 1,188.12 | 11.88 |
| 10% | 1,200.00 ÷ 1.10 | 1,090.91 | 109.09 |
| 20% | 1,200.00 ÷ 1.20 | 1,000.00 | 200.00 |
The 1% and 10% rates apply to the goods and services in lists (I) and (II) annexed to the VAT Law (KDV Kanunu), while the 20% general rate applies to everything not covered by those lists. The previous rates were 8% and 18%; you may see these rates on documents dated before July 10, 2023. 0% is not a rate; for a tax-free line you need to select an exemption code or another transaction code. Details are in our article on e-invoice (e-Fatura) exemption codes.
Doing this in Kafatura: viewing the preliminary VAT calculation for the period. The screen was recorded with demo store data; step-by-step videos are on the How to Use Kafatura? page.
Rounding: where do kuruş differences come from?
Amounts on an invoice are shown to the kuruş (1/100 TL), that is, with two decimal places. Because the fractions produced by division are rounded, calculating the same amount in different ways can lead to a difference of 1–2 kuruş.
Example: 7 units of a product with a 20% rate and a VAT-inclusive price of 49.99 TL were sold.
- Line by line: 49.99 ÷ 1.20 = 41.658… → 41.66; 7 × 41.66 = 291.62
- On the total: 7 × 49.99 = 349.93; 349.93 ÷ 1.20 = 291.608… → 291.61
There is a 1-kuruş difference between the two methods. In marketplace orders, the tax-inclusive amount paid by the customer is fixed, so check that the invoice's grand total matches the order amount. Confirm with your e-invoice integrator's settings and your certified public accountant (mali müşavir) which line the kuruş difference should be corrected on.
We explain with examples how to use these formulas together with commission and shipping costs when setting your selling price in our guide to calculating profit on marketplaces.
Frequently asked questions
How do you find the VAT in a VAT-inclusive price?
Multiply the inclusive amount by the rate and divide by (1 + rate). Dividing the inclusive amount by 6 for 20%, by 11 for 10% and by 101 for 1% gives the same result.
How do you calculate the VAT-exclusive price?
Divide the VAT-inclusive price by (1 + VAT rate). For example, for a price of 600.00 TL at the 20% rate: 600.00 ÷ 1.20 = 500.00 TL.
When did the VAT rates change?
Since July 10, 2023, the rates have been 1%, 10% and 20%. Before that date, the reduced rate was 8% and the general rate was 18%.
Resources
#VAT (KDV)#VAT-inclusive#VAT-exclusive#VAT rates
Kafatura Editorial Team
We answer the everyday questions of marketplace sellers using a verified regulatory knowledge base. If you spot an error or something out of date, please let us know.
This article is translated from the Turkish original; regulatory references apply to Türkiye. Read the Turkish original →
