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How to Calculate VAT (KDV) in Turkey

To get a VAT-inclusive price from a VAT-exclusive one, multiply the price by (1 + VAT rate); to get the exclusive price from an inclusive one, divide by (1 + VAT rate). The VAT (KDV) rates in Turkey in 2026 are 1%, 10% and 20%. For example ₺1,000 + 20% VAT = ₺1,200, and the VAT inside a ₺1,200 inclusive price is ₺200.

butce.app Editör Ekibi Updated 4 min read

Short answer

  • Exclusive to inclusive: Price × (1 + rate). ₺1,000 × 1.20 = ₺1,200.
  • Inclusive to exclusive: Price / (1 + rate). ₺1,200 / 1.20 = ₺1,000.
  • VAT inside an inclusive price: Price × rate / (1 + rate). ₺1,200 × 0.20 / 1.20 = ₺200.
  • 2026 rates: 1%, 10%, 20% (general rate 20%).

Current VAT rates (summary)

Value Added Tax (KDV in Turkish) is added to the price of goods and services and is ultimately paid by the consumer. Turkey applies three rates in 2026:

RateScope (general)Multiplier
1%Items in list (I) of the VAT Law, such as certain basic foods, newspapers and magazines1.01
10%Items in list (II), such as certain food products and food and drink services1.10
20%General rate: all goods and services not in the lists1.20

From 10.07.2023 the general rate rose from 18% to 20% and the reduced rate from 8% to 10%; they did not change in 2026. For a specific product's rate, check the current lists of the Revenue Administration.

From exclusive to inclusive

VAT-inclusive price = Exclusive price × (1 + VAT rate)
VAT amount = Exclusive price × VAT rate
Exclusive priceRateVATInclusive price
₺1,00020%₺200₺1,200
₺1,00010%₺100₺1,100
₺1,0001%₺10₺1,010
₺24,75020%₺4,950₺29,700

From inclusive to exclusive

VAT-exclusive price = Inclusive price / (1 + VAT rate)
VAT amount = Inclusive price × VAT rate / (1 + VAT rate)
Inclusive priceRateExclusive priceVAT
₺1,20020%₺1,000₺200
₺55010%₺500₺50
₺45,00020%₺37,500₺7,500

Practical use

Freelancers and anyone issuing invoices

When quoting a client, always state whether the price is "excluding VAT" or "including VAT". A ₺30,000 + VAT quote means collecting ₺36,000, of which ₺6,000 is not your income but VAT owed to the tax office. Keeping collected VAT in a separate account avoids a cash squeeze at filing time.

Consumers

Shelf prices include VAT. In business purchases or invoiced sales an exclusive price may be quoted; when comparing, bring both prices to the same basis.

VAT in a spreadsheet

Inclusive price: =A2*(1+B2)
Exclusive price: =A2/(1+B2)
VAT amount (from inclusive): =A2*B2/(1+B2)
(A2 = price, B2 = rate; 0.20 for 20%)

Enter an amount in our free VAT calculator to see the inclusive and exclusive price instantly.

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VAT and your personal budget

In a personal budget VAT is not tracked separately because it is already inside the price you pay. But if you are self-employed or run a sole proprietorship, counting the VAT you collect on invoices as income makes your budget look bigger than it is. Keep collected VAT in a separate account as "tax payable" rather than income. To separate income and expenses correctly, see our income and expense table guide.

Frequently asked questions

How do I calculate a VAT-inclusive price?

Multiply the VAT-exclusive price by (1 + VAT rate): 1.20 for 20% VAT, 1.10 for 10% and 1.01 for 1%. For example, a 1,000 TL exclusive price becomes 1,200 TL with 20% VAT.

How do I remove VAT from an inclusive price?

Divide the inclusive price by (1 + VAT rate) to get the exclusive price; the difference is the VAT. For example, 1,200 TL / 1.20 = 1,000 TL exclusive, VAT = 200 TL. Taking 20% of the inclusive price gives the wrong answer (240 TL).

What are the VAT rates in Turkey in 2026?

Turkey applies three VAT rates in 2026: 1%, 10% and 20%. The general rate is 20%. Since 10 July 2023 the general rate has been 20% (up from 18%) and the reduced rate 10% (up from 8%). Which rate applies to which goods and services is set in the lists attached to the VAT Law.

What is VAT withholding (tevkifat)?

For certain services and deliveries, part of the VAT is paid directly to the tax office by the buyer instead of the seller. Withholding rates vary by type of work and are expressed as fractions (for example 5/10). Individual consumers usually do not deal with it; it applies to business-to-business transactions.

Sources

butce.app Editör Ekibi

This guide was written by the team behind butce.app, a budgeting app for tracking income, expenses, card installments and loans. Figures were checked against the official sources listed above; the article was last reviewed on .

This content is general information, not investment, tax or legal advice. Rates change, so check the official source before you decide.

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