The KDV Tax: is a tax imposed at different rates of expenditure, according to the Value Added Tax or KDV Law No. 3065 of 1984, although companies are the ones that pay this tax according to the sales benefits they achieve. . This tax is deducted from the consumers of the final goods. This means that this tax is ultimately deducted from the person who consumes the goods. This tax is applied in almost all countries of the world and is imposed in Turkey according to the need of the goods consumed in% 3,% 8 and% 18.
Calculation of the KDV Tax
The KDV tax is calculated by deducting the tax rates from the sale price of the product. Therefore, the tax is increased according to the high prices of the producer's products until it reaches the consumer.
Tax on quoted and calculated KDV
The simple way to calculate the KDV tax is to multiply (the product price x 1 + the tax rate). For example, assuming a product price of 1000 liras and the tax rate is% 18, the calculation is as follows: 1000x (1 + 0.18) = 1000x 1.18 = 1180 liras the price of the Product after including the tax (after the deduction of the tax).
To calculate the unlisted KDV tax, it is sufficient to replace the process of multiplication by division by dividing the price of the product by (1 + tax rate), for example. When imposing the price of the product after deducting the tax of 1180 liras and the tax rate is% 18, the calculation is as follows: 1180 / (1 + 0.18) = 1180 / 1.18 = 1000 lira the price of the product before including the tax (before the tax deduction).
Differences in rounding numbers in the calculation of the KDV tax
In calculations, the first two places following the comma are used in decimal numbers, and the reason for this is that the third in decimal numbers does not have a class or unit parallel to the Turkish currency, and the third number that follows the comma as follows:
• If the mentioned number is greater than 5, it will go up to the top, since 5,586 becomes 5.59.
• If the mentioned number is less than 5, it will drag down when 5,583 becomes 5.58.
• If the number 5 is close to the nearest third, like 5,585 it becomes 5,58 because 8 is an even number. In this rule, zero is calculated as an even number. The rounding processes do not exceed the impact of the calculations in a penny, which is a necessity to know the accounting.
Tax rate KDV according to the products
As mentioned above, there are three percentages of the KDV tax imposed on the products, namely% 1,% 8 and% 18, which are divided by the following products:
• Products with% 1 Deduction
It is required on wheat and its derivatives that are considered basic consumable materials, as well as residential units that do not exceed an area of 150 square meters.
• Products with% 8 Deduction
Likewise, it is required on basic materials that are not included in luxury goods, such as meat and its derivatives, milk and milk products, eggs, pulses, honey, jam, syrup, sweets, some animals and other products and services.
• Products with% 18 Deduction
It is imposed on products that are not considered essential consumer goods with certain exceptions, such as communications products, furniture, electrical appliances, some animals, some spices and other products and services.
To access the full list of products, visit the following link: