VAT calculator

Value added tax is a consumption tax on the value created when a good or service is sold. The seller collects it and remits it on the return. An invoice shows tax base (net), VAT and total (gross) on separate lines so the buyer books deductible VAT and the seller books output VAT. The wrong rate breaks both collection and refund.

The math looks simple: net × rate = VAT, net + VAT = gross. The reverse is gross / (1 + rate) = net. At 20 percent you divide gross by 1.20. “Add VAT” and “extract VAT” in the tool do both directions. Rounding ends at kuruş; e-invoice lines use the same logic.

If a quote says “10,000 TRY ex-VAT” at 20 percent, tax is 2,000 and payable is 12,000. If the list price is “12,000 TRY incl. VAT”, net is 10,000 and VAT is still 2,000. People often subtract 20 percent from 12,000 and get 9,600. That is wrong; 20 percent is already inside the gross, so net = gross / 1.20.

If there is a discount, apply it on the net first, then add VAT. Otherwise tax looks as if it was cut by the discount too. Partial delivery and returns recalculate each line with its own base and rate. Web design, hosting and software packages are quoted ex-VAT; card capture takes the gross. Proformas in the client panel use the same split.

The default is 20 percent. Staple food, books, lodging and some health services use reduced rates; the list is updated in Revenue Administration communiqués. If unsure, check the goods/service code before issuing. The wrong rate causes penalties and disputes. The tool defaults to 20; you pick 1 or 10 yourself.

Exports and some cross-border services may be exempt or reverse-charged. This page does not emit exemption codes; it only shows the arithmetic. With withholding, gross is still net + VAT but part of the VAT payable shifts to the buyer. Note that on the line for corporate clients. Webify invoices from the Beylikdüzü office state the rate per line.

The most common error is subtracting the percent from a VAT-inclusive price. Second is discounting the gross. Third is rounding kuruş on the total instead of each line; the e-invoice may be rejected. Fourth is converting VAT to TRY without the CBRT rate on a foreign-currency invoice. Verify once in the tool and send the same figures to accounting.

Check: is the rate right, is the direction add/extract right, do line totals match the grand total, is withholding noted. Webify splits quotes and invoices with the same engine; this page shows that split in the browser with no login. Copy the figure into the panel or bookkeeping.

Corporate sites quote packages ex-VAT; the card or transfer captures the gross. Clients search “why the label and the charge differ”. The answer is this split: the shop window is net, capture is gross. Hosting renewals follow the same rule; 2,400 TRY ex-VAT is 2,880 at 20 percent. Type 2400 and add VAT to see the same figure.

An e-invoice line has separate fields for base, rate, VAT and line total. Rounding the total by hand and leaving the lines breaks the GİB schema. On a multi-line quote, verify each item once in the tool, then enter the same kuruş in accounting software. A credit note keeps the original rate; changing it to “it is 10 percent now” gets the document rejected.

Search intent is clear: “VAT calculator”, “net from inclusive price”, “how to add 20 percent VAT”. This guide answers those queries; it is not legal advice. If rates or exemptions change, the GİB notice wins. Proformas and invoices from the Beylikdüzü office use this arithmetic; the box on this page shows the same work without a login.