TAX Calculator

What is Value Added Tax?

Value Added Tax (VAT) is a type of indirect tax that consumers pay on the goods and services they purchase. This tax is added to the value of the product or service at every stage, that is, from production to consumption. The primary purpose of VAT is to tax the increase in value that occurs at every stage of economic activities. Therefore, this tax is included in the price of the final product or service that reaches the consumer.

Food, beverage tax and electronic device tax rates are different in our country. If you want to calculate these rates at home, you can use our tool. You can calculate the VAT rate by entering it in the working logic of our tool.

Why is VAT paid?

VAT is one of the primary sources of income for governments and is collected through economic activities. This tax is used to finance various public needs, such as the government's provision of public services, development of infrastructure projects, education and health services. Payment of VAT, on the one hand, provides economic resources to the state and, on the other hand, ensures that the value of goods and services in the market is reflected more transparently.

VAT is included in almost every product purchased. If you are wondering about the VAT-free amount of the product, you can start using our online tool immediately.

How is VAT calculated?

VAT calculation is made on the gross price of the product or service. The VAT rate may vary depending on the type of product or service. With a simple formula, VAT is calculated as follows: VAT Amount = Gross Price x VAT Rate. For example, if we estimate 18% VAT for a product worth $100, the VAT amount will be $18, and the price of this product, including VAT, will be $118.

Calculation Tool Including VAT

Price calculation, including VAT, is used to determine the total cost of a product or service reaching the final consumer. This calculation is made by adding the VAT amount to the gross price. For example, if the price of a product excluding VAT is $150 and the VAT rate is 18%, the price including VAT is calculated as follows: $150+ ($150x 0.18) = $177.

Calculation Excluding VAT

Price excluding VAT calculation is used to determine the essential cost of a product or service excluding VAT. This calculation is made by subtracting the VAT amount from the VAT-inclusive price. For example, if the price of a product, including VAT, is $120 and the VAT rate is 20%, the price excluding VAT is calculated as follows: $120 / (1 + 0.20) = $100.

How to Use the TAX Calculation Tool?

Step 1: You have to choose between two boxes: with VAT and without VAT. You need to select this option whichever results you want to achieve.

Step 2: What you need to do in this step is to enter the price of the product.

Step 3: Since VAT is different depending on the product you buy, enter the VAT percentage of the product in the "Value Added Tax" field.

Step 4: After filling in all the fields, you can perform the VAT calculation by clicking the "Calculate" button. In the image below, 20% VAT is calculated for a product worth $100, excluding VAT.

Frequently Asked Questions About the Value Added Tax Instrument

How do I calculate the product without VAT?

To calculate the price without VAT, you divide the total price by 1 plus VAT. For example, for $118 with 18% VAT, the price without VAT is 118 / 1.18 = approximately $100.

How to Calculate Price with VAT in the Easiest Way?

To calculate the price with VAT, multiply the price without VAT by 1 plus the VAT rate. Example: For $100 and 20% VAT, 100 x 1.20 = $120 is the price with VAT.

How Do VAT Rates Vary According to Product Types?

VAT rates vary by product type; It may be low in basic foods and high in luxury products. In our country, there is currently a 1% VAT on food and 20% VAT on most other areas.

Are VAT Calculation Tools Reliable?

Our VAT calculation tool is highly reliable with up-to-date and accurate rates. It is designed to perform fast and error-free calculations instantly.