The KDV Tax: is a tax imposed at different rates of expenditure, in accordance with the Value-
Added Tax Or KDV Law No. 3065 of 1984, although the companies are the ones that pay this tax
in accordance with the sales profits they achieve, this tax is deducted from the final goods’
consumers this Means that this tax is ultimately deducted from the individual who consumes
the goods. This tax is applied in almost all countries of the world and is imposed in Turkey
according to the necessity of the goods consumed by %3, %8 and %18.
Computation of the KDV Tax
The KDV tax is calculated by deducting the tax rates from the selling price of the product.
Therefore, the tax is increased according to the high prices of the products’ sales from the
producer until it reaches the consumer.
Listed and calculated KDV Tax
The simplest way to calculate the KDV tax is to multiply (the price of the product x 1 + the tax
rate) For example, assuming a product price of 1000 lira and the tax rate is %18, the calculation
is as follows: 1000x (1 + 0.18) = 1000x 1.18 = 1180 lira the price of the Product after listing the
tax (after deduction of tax).
For calculating KDV Tax not listed, it is enough to replace the multiplication process with division
by dividing the price of the product by (1 + tax rate) e.g. by imposing the price of the product
after deducting the tax of 1180 lira and the tax rate is %18, the calculation is as follows: 1180 /
(1 + 0.18) = 1180 / 1.18 = 1000 lira the Product price before listing the tax (before deduction of
tax).
Differences in Rounding Numbers in the KDV Tax Calculation
In the calculations, the first two places are used that follows the comma in the decimal
numbers, and the reason for this is that the third in decimal numbers do not have a class or unit
parallel to the Turkish currency, and rounding the third number that follows the comma as
follows:
If the number mentioned is bigger than 5 it will rise to the top such as 5,586 becomes
5,59.
If the number mentioned is smaller than 5, it will be dragged down as 5,583 becomes
5,58.
If the number 5 is close to the nearest number such as 5,585 becomes 5,58 because 8 is
an even number. In this rule, zero is calculated as an even number. Rounding processes
do not exceed the impact of calculations on one penny, which is a must to know the
accounting.
KDV Tax Rate According to the Products
As mentioned above, there are three percentages of KDV tax imposed on products, namely %1,
%8 and %18, which are divided by the following products:
Products with %1 Deduction