What is VAT?
Value Added Tax (in Turkey: KDV) is an indirect tax levied on the value added at each stage of supply. The end consumer bears it; businesses deduct the VAT they paid on purchases from the VAT they collected and file the difference.
How to calculate VAT
Net to gross: Gross = Net × (1 + VAT rate)
Gross to net: Net = Gross ÷ (1 + VAT rate)
VAT amount: Gross − Net
Example: adding VAT
For a ₺1,000 net product at 20%: 1,000 × 0.20 = ₺200 VAT; gross price ₺1,200.
Example: removing VAT
From a ₺1,200 gross invoice: 1,200 ÷ 1.20 = ₺1,000 net; VAT ₺200. Common mistake: 1,200 × 0.80 = ₺960 is wrong — VAT is calculated on the net amount.
VAT rates in Turkey
| Rate | Typically applies to |
|---|---|
| 20% | Standard rate: most goods and services |
| 10% | Reduced rate: certain foods, restaurant and accommodation services |
| 1% | Reduced rate: certain basic foods and specific supplies |
Rates can change by presidential decree; confirm the rate for your product with current legislation or your accountant before invoicing. Selling elsewhere? Use the custom rate option.
Quick VAT table (20%)
| Net | VAT | Gross |
|---|---|---|
| ₺100 | ₺20 | ₺120 |
| ₺500 | ₺100 | ₺600 |
| ₺1,000 | ₺200 | ₺1,200 |
| ₺5,000 | ₺1,000 | ₺6,000 |
| ₺10,000 | ₺2,000 | ₺12,000 |
VAT tips for online stores
- Consumer-facing prices should include taxes; show VAT-inclusive prices on product pages and in the cart.
- Assign the correct VAT rate to each product — one order can mix rates.
- Shipping charges are subject to VAT as well.
- Selling on marketplaces? VAT on commission invoices is deductible — see the commission calculator.
What is VAT withholding?
With VAT withholding (tevkifat), part of the VAT is paid to the tax office directly by the buyer instead of the seller (e.g. 5/10, 9/10). It applies to certain services and buyers; if your invoice has withholding, the VAT you collect is reduced accordingly.
VAT-inclusive pricing with Tecof
Instead of running numbers one by one, manage the business from one panel: Tecof brings your website, online store, payments (Tecof POS, iyzico, PayTR, Craftgate and bank virtual POS), shipping and campaign tools together. Generate your site from a prompt, refine it in Studio and publish on the free plan.




