VAT & Accounting
VAT-Inclusive and VAT-Exclusive Price Calculation: Formulas and Examples
May 28, 2026 · KârHesapla · Ferhat Demir · E-commerce Specialist
The most common mistake when converting a VAT-inclusive price to a VAT-exclusive one is multiplying the price directly by the VAT rate and subtracting the result. The correct formulas:
Inclusive = Exclusive × (1 + Rate)Exclusive = Inclusive / (1 + Rate)
Example: 20% VAT
| Operation | Wrong | Correct |
|---|---|---|
| 240 TL inclusive to exclusive | 240 − 20% = 192 TL ✗ | 240 / 1.20 = 200 TL ✓ |
| 200 TL exclusive to inclusive | — | 200 × 1.20 = 240 TL ✓ |
The difference looks small, but at a 20% rate the wrong method skews the price by 4% — on a low-margin product, that can be half of your profit.
Current rates in Turkey
The common VAT (KDV) rates in Turkey are 1%, 10% and 20%; confirm the rate for your product category from e-invoice/GİB (Turkish Revenue Administration) sources. Marketplace list prices are always VAT-inclusive.
For quick two-way conversion, use the VAT Calculator.