KDV Tax in Turkey
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
Imposed on wheat and their derivatives that are considered
basic consumables materials, as well as residential units that do not exceed an
area of 150 square meters.
- Products
with %8 Deduction
Also, imposed on basic consumer materials which that do not
fall within the luxury goods, such as meat and its derivatives, milk and
derivatives, eggs, legumes, honey, jam, syrup, candy, some animals, and other
products and services.
- Products
with %18 Deduction
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 product list, please visit the following
link:
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