VAT Calculator Tool

Taxpayers who face VAT rejection can appeal to the relevant tax administration within the scope of the Tax Procedure Law. In this process, the taxpayer conducts a detailed review of the rejection decision and then prepares an appeal petition with documents supporting their appeal, claiming that the rejection decision is unfair. The appeal is examined by the tax administration, and if a decision is made in favor of the taxpayer, the rejected VAT amount is either refunded or offset against the taxpayer's future period tax debts. In case the appeal is rejected, the taxpayer has the right to file a lawsuit in administrative judiciary. This process allows the taxpayer to exercise their legal rights and ensures the rule of law.

VAT Plate is an official document that businesses that are VAT taxpayers in Turkey must hang in a visible place in their workplaces. This plate shows that the business is a VAT taxpayer and fulfills this obligation to the state. The VAT Plate contains basic information such as the business's tax identification number, title and address. The obligation to hang the VAT Plate generally applies to all businesses that exceed a certain turnover and operate within the scope of VAT liability. This shows the public that the business is tax compliant and subject to VAT legislation.

VAT included calculation is calculated using the formula 'VAT excluded product price x (1 + VAT Rate)'. Let's assume that a product's VAT excluded price is 100 TL. VAT rate: 20% (This is used as 0.20 in calculation) VAT included calculation formula: VAT Excluded Price x (1 + VAT Rate) In this case: 100 TL x (1 + 0.20) = 100 TL x 1.20 = 120 TL So, the VAT included price of a 100 TL product with a 20% VAT rate becomes 120 TL.

VAT return is the notification by tax taxpayers to the relevant institutions of how much tax they are obliged to pay on the income they earn from the sale of goods and services. This notification is made at the tax rates determined by the state.

The VAT return is filed with the tax office to which the taxpayers are affiliated in the province where they live, or electronically through the e-Declaration system on the website of the Revenue Administration (GIB).

First, the 'Value Added Tax Return Form' must be filled out completely. Especially black or blue ballpoint pen should be used. You can also submit VAT returns to your tax office in person or send them by mail, either registered or registered with return receipt. It is also possible to prepare and send the VAT return in the form of e-Declaration through the internet tax office.

VAT deduction is exemptions and incentives provided by the state for taxpaying individuals and institutions. With VAT deduction, it is aimed that parties other than the end consumer do not pay VAT as a result of sales or services provided to the end consumer. Thus, those in the production, sales and logistics chain can deduct the tax they paid from the tax they collect. Thus, an increase is seen in the turnovers of businesses.

VAT base indicates the amount of the product or service before VAT is added. VAT base is the monthly total of the VAT-free price of the product or service.

VAT Withholding means sharing or deduction on value added tax. If the state shares the taxes collected from buyers and sellers among the parties, this transaction is called VAT Withholding.

It is the name given to the VAT amounts that businesses collect from consumers as a result of goods or services delivered.

Products subject to 1% VAT include; bulgur, rice, chickpeas, barley and all legume products, tea, water, salt, solid oil, liquid oil, sugar, white meat, red meat, fish, cheese, milk, cream, yogurt, olives, eggs, onions, potatoes, tomatoes, cucumbers, peppers and other vegetable products, fruits, canned foods, pickles, jam, tomato paste, molasses, honey, hazelnut halva, tahini halva, Turkish delight, chocolate, crackers, biscuits, cake, wafers, baklava, cake, pasta, phyllo, vermicelli, hazelnuts, cereal, almonds, walnuts, peanuts and other dried nuts, spices, and baby food also has a VAT rate of 1%.

Products subject to 20% VAT include; Television, computer, mobile phone, expensive clothing items, jewelry, luxury cars, alcoholic beverages and tobacco products, cosmetics and perfumes, some services (Professional services such as legal, engineering, architectural services), food and beverages in restaurants and cafes, hotel accommodations, some construction materials, luxury transportation services, expensive works of art and antiques.

In Turkey, Value Added Tax (VAT) is regulated by Law No. 3065, which came into effect in 1984. The tax system is based on individuals and institutions declaring their earnings and the amount of tax they need to pay in certain periods. In this way, it is aimed to prevent tax evasion. The VAT return is filed by the 24th of each month, and VAT must be paid by the 26th day of the declared month. Late payment interest is applied in case of late payment. In addition, for high VAT amounts, the tax office can block bank accounts to secure its receivables. The VAT system in our country requires those who deliver goods and services to collect VAT with documents such as invoices they issue during delivery. This collected VAT is called calculated VAT. The state keeps the system up to date by making changes in the VAT Law from time to time, and can waive late payment interest with practices such as tax amnesty in some periods.

A VAT taxpayer is a business or person who has the obligation to pay VAT to the state.

According to the opportunities provided by the VAT law, those who perform various transactions can be exempt from tax. These transactions; Exporters: Those who sell goods and services abroad. Those who provide services to people abroad. Transportation services for abroad. Those who use certain vehicles and materials: Transactions related to sea, air and railway transport vehicles. Platinum, silver, gold, petroleum exploration and enrichment operations. Those who receive investment incentive certificates. Transportation business: Companies that transport between Turkey and foreign countries. Those with diplomatic rights: Representations and employees of other countries. Import-related transactions: Entry of some goods into the country and customs procedures. Social purpose activities: Cultural, scientific and social services of the state and foundations. Those taxed under simple procedure: Artisans exempt from tax and some taxpayers according to the Income Tax Law can be listed.

The VAT refund process can vary depending on various factors from the date the application is made. This process can usually take a month, but in some cases it can be shorter or longer. The processing time may vary depending on the complexity of the documents submitted during the application, the workload of the tax office, and the nature of the refund request. Businesses requesting VAT refunds usually submit these requests to the relevant tax office at the beginning of the month following the requested month. The examination stage carried out by the tax office is carried out to check the accuracy and compliance of the documents submitted and the transactions made. This stage may take time depending on the current workload of the tax office and the complexity of the request. After the tax office completes the examination process, if the refund request is deemed appropriate, it transfers the VAT amount to be refunded to the business's bank account. The time of the refund may vary depending on the length of the examination process, the current transaction volume of the tax office, and many other factors. Although in most cases the refund transaction occurs shortly after the examination process ends, in some cases this process may take longer than expected.

To calculate VAT from gross amount, you first need to know the VAT rate for the product or service. Common VAT rates in Turkey are 1%, 10% and 20%. However, these rates may vary depending on different product or service types. Formula for Calculating VAT Amount from Gross VAT-free Price = Gross Price / (1 + VAT Rate) VAT Amount = Gross Price - VAT-free Price Steps for Calculating VAT Amount from Gross 1) First, determine the gross (VAT included) price of the product or service. 2) Calculate the VAT-free price according to VAT rates. Divide the gross price by the value (1 + VAT Rate). 3) Find the VAT amount by subtracting the VAT-free price you calculated from the gross price. Example of Calculating VAT Amount from Gross: If a product's gross price is 120₺ and the VAT rate is 20%: - VAT-free Price = Gross Price / (1 + VAT Rate) - VAT Amount = Gross price - VAT-free Price - VAT Amount = Gross Price - (Gross Price / 1.20) - VAT Amount = 120 - (120 / 1.20) - VAT Amount = 120 - 100 - VAT Amount = 20₺ This method helps you find the VAT-free price and VAT amount from the gross amount simply and quickly.

The documents required for VAT refund procedures vary depending on the type of transaction for which the refund is requested. However, there are common documents sought for all transactions that give rise to refund rights. Here are some documents generally requested in VAT refund procedures and additional documents required according to special circumstances: 1) Common Documents - Standard Refund Request Petition - Deductible VAT List for the Period in which Refund is Requested - Charged VAT List - VAT Calculation Table for which Refund is Requested - Sales Invoice List 2) Additional Documents Required According to Special Circumstances - Customs Declaration - Payment Document - Tax Examination Report or CPA Report - Approved Special Invoice or Invoice List - Subcontracting Service Invoices It should not be forgotten that different and specialized documents may be required for each refund type. These documents are examined by the tax office to confirm the accuracy and legality of the refund transaction. It is important to contact the relevant tax office before starting the refund process and to prepare all necessary documents completely and correctly.

An invoice issued with an incorrect VAT rate is contrary to tax legislation and must be corrected. The seller must apply to the tax administration to correct the over or under collected VAT and issue a correction invoice if necessary. The buyer can request a refund for overpaid VAT. This process must be carried out in accordance with the Tax Procedure Law, and corrections must be made in time to avoid possible tax penalties.

The process of obtaining a VAT Exemption Certificate requires the taxpayer and tax administration to comply with legal procedures and consists of the following steps: 1) Compliance Assessment: First, the taxpayer evaluates whether the conditions foreseen for transactions subject to exceptional status are met within the framework of the Tax Procedure Law and relevant legislation. 2) Official Application: If compliance with the legislation is determined, the taxpayer applies to the tax office to which they are affiliated for a VAT exemption certificate together with the documents legally foreseen. 3) Submission of Documents: Together with the relevant application, invoices, contracts and other documents required by the legislation regarding the transactions or services within the scope of exemption are submitted to the tax administration. 4) Tax Office Examination: The tax office examines and evaluates the documents and application submitted by the taxpayer according to the relevant provisions of the tax legislation. 5) Decision and Issuance of Certificate: If the application is found to comply with the legislation, the VAT exemption certificate is issued by the tax administration and delivered to the taxpayer. 6) Implementation: With this certificate, the taxpayer can carry out their transactions within the scope of exemption under VAT exemption.

Partial exemption in VAT is a tax regulation applied in the sale or production of certain goods or services and exempts these transactions from VAT only at a certain rate. This type of exemption covers situations where the goods or services are not completely exempt from VAT, but a rate below the standard VAT rate is applied. Partial exemption is defined within the framework of incentives foreseen in tax legislation for certain sectors, products or services. With the partial exemption regulation, it is aimed to reduce the tax burden on goods or services and support certain economic activities.

VAT application for digital services for VAT taxpayers in Turkey includes special regulations for electronic services provided domestically and abroad. In this context, VAT calculation is required on digital services provided by both companies in Turkey and companies abroad to their users in Turkey. Digital services provided by companies resident in Turkey are subject to standard VAT rates. These companies need to calculate VAT on the income they earn from the services they provide and must declare this VAT to the tax office periodically. VAT application for foreign companies that are not resident in Turkey and provide digital services to users in Turkey was clarified with the regulation made in 2018. VAT payments are required on digital services provided by foreign-based companies in Turkey. These companies must be VAT taxpayers in Turkey and are obliged to pay the VAT they calculate on their services to the tax administration in Turkey.