How VAT is calculated in Turkey: rates, formulas and the monthly return

To add Turkish VAT (KDV) to a net price, you multiply the net amount by the rate: 1,000.00 TL at 20% gives 200.00 TL of VAT and a 1,200.00 TL total. To take VAT out of a gross price, you divide by one plus the rate: 1,200.00 TL including 20% holds 200.00 TL of VAT.

This guide is for people taxed in Turkey who work in English: freelancers, remote workers and small-company owners. It covers the 2026 rates, both formulas with worked examples, how the monthly payable is found, and when the return is filed.

Which VAT rates apply in Turkey?

In 2026 three rates apply: a 20% general rate, 10% for supplies in List II, and 1% for supplies in List I. The 20% and 10% wording comes from Presidential Decision 7346, in force since 10 July 2023, as consolidated in the tax administration's current rates decision (GIB: current VAT rates). The law gives the President the power to set rates within its bounds (KDVK Art. 28).

Two points matter. First, the rate follows the decision's lists and the nature of the supply, not the everyday name of the product. The same product can fall under a different rate depending on how it is supplied. Second, 10% and 1% apply only to listed items; where no list covers the supply, the rate is 20%. Where you are unsure, check the current annexes before you issue the invoice. Exports and listed exemptions follow their own rules and sit outside this guide.

How do you add VAT to a net price?

Use this when your price excludes VAT. Multiply the net amount by the rate to get the VAT, then add it.

For a 1,000.00 TL net invoice at 20%, the VAT is 1,000.00 x 0.20 = 200.00 TL, and the gross total is 1,200.00 TL. The invoice shows the net and the VAT on separate lines.

At 10% the same net gives 100.00 TL of VAT and a 1,100.00 TL total. At 1% it gives 10.00 TL of VAT and a 1,010.00 TL total. The method never changes; only the rate changes.

How do you take VAT out of a gross price?

Use this when the customer gives you a VAT-included price. Divide the gross by one plus the rate to get the net. The VAT is the difference.

For 1,200.00 TL including 20%, the net is 1,200.00 / 1.20 = 1,000.00 TL, and the VAT inside it is 200.00 TL. The same result comes from 1,200.00 x 20 / 120.

At 10% divide by 1.10: 1,100.00 TL holds 1,000.00 TL net and 100.00 TL VAT. At 1% divide by 1.01: 1,010.00 TL holds 1,000.00 TL net and 10.00 TL VAT. The common mistake is adding VAT on top of a price that already includes it. State on the contract and the invoice whether each price excludes or includes VAT.

How is the monthly VAT payable found?

The monthly math extends the invoice math. Start from the VAT you collected on sales (output VAT). Subtract the deductible VAT you paid on purchases (input VAT) and the amount carried in from the previous month. The law states the rule as collected minus deductible, with any excess input carried forward (KDVK Art. 29).

Take one month with example figures. Sales give 33,000.00 TL of output VAT on one set of invoices and 11,000.00 TL on another, 44,000.00 TL in total. Purchases give 9,000.00 TL of deductible VAT at 20% and 2,400.00 TL at 10%, 11,400.00 TL in total. An amount of 6,000.00 TL is carried in (devreden KDV) from the previous month.

The payable is 26,600.00 TL: 44,000.00 minus 11,400.00 minus 6,000.00. Where the deductible side is larger, the difference carries forward to the next month; a carried-forward balance is not a cash refund. Only input VAT shown on a proper invoice or similar document counts, and some purchases are never deductible. This is general information, not tax advice; confirm with your accountant (SMMM) before you file or pay.

When is the VAT return filed and paid?

The rule names the month after the tax period. File the monthly return by 23:59 on the 28th of the following month, and pay the tax by the same day (GIB: filing and payment deadlines, set by VUK Circular No. 149). The VAT law itself still prints the 24th for filing (KDVK Art. 41) and the 26th for payment (Art. 46); the circular moved both to the 28th. The Revenue Administration sometimes extends a single month as well, so check that month's day on the GIB tax calendar before you file. Where the last day falls on an official holiday, the deadline moves to the end of the first working day after it (VUK Art. 18).

Where does Zeki show this?

Zeki Smart Accountant writes a VAT rate and a price-includes-VAT switch on each company entry. The rate defaults to 20%, with 0%, 1%, 10% and 20% to pick from. The monthly VAT page subtracts deductible paid VAT and the carried-in amount from collected VAT. It shows the month as an estimated payable or an estimated carried forward, per wallet. The figures are estimates, as explained in what Zeki's figures mean, and they do not replace a return.

What this doesn't cover

VAT withholding (tevkifat), where a fraction of the VAT goes a different route, and reverse-charge VAT on cross-border services (the 2 no.lu return) are not in this guide. Exports and other exemptions with refund rights, the refund limit on reduced-rate supplies, e-Fatura and e-Arşiv duties, non-deductible expenses, stamp tax and payroll are not covered either. Each depends on its own conditions; assess your own case with your accountant.