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Miraç Özdemir
Trade Credit, Rediscount & Financing

VAT on Trade Credit Invoice Calculator

Calculate VAT on a term-charge (vade farkı) invoice and the VAT-inclusive total, or split the VAT base out of a VAT-inclusive amount.

Version 3

Things to keep in mind:

  • The VAT rate and exemption/withholding status depend on the nature of the underlying supply; withholding changes the result.
  • Invoice timing, document rules and deductibility are not assessed.
  • Stamp duty or other taxes on the term charge are not included.

Calculator

Term Charge and VAT

TRY

Term charge excluding VAT (base) or including VAT depending on "Amount type" (TRY).

VAT rate of the underlying goods/services the term charge relates to (e.g. 20, 10, 1).

Whether the amount you entered excludes or includes VAT.

After the first calculation, the result updates automatically when you change a value.

Result

Enter the values and press Calculate to see the result here.

About this tool

The term charge (an interest-like amount) collected on a credit sale forms part of the VAT base of the underlying supply under VAT Law art. 24/c and follows the VAT rate of that supply. VAT is therefore shown on the invoice issued for the charge. This tool calculates the VAT and the total.

Formulas

  • From an amount excluding VAT: VAT = Base × Rate / 100; Total = Base + VAT
  • From an amount including VAT: Base = Amount / (1 + Rate / 100); VAT = Amount − Base

Example 1: TRY 1,000 term charge at 20% VAT: VAT 200, total 1,200. Example 2: TRY 1,200 including VAT at 20%: base 1,000, VAT 200.

The VAT rate of the term charge is that of the related sale (e.g. 1% or 10% for some food, 20% general). Compute the charge with the commercial term-charge tool and bring it here.

How to read the result

"Base" is the amount excluding VAT on the term-charge invoice, "VAT" the tax shown separately on the invoice and "Total" the amount collected from the buyer. For the buyer this VAT can be deducted where the conditions are met; for the seller the term charge adds to turnover. If the contract states the term charge including VAT, choose the "from an amount including VAT" mode; otherwise add VAT on top.

How to use

  1. Enter the term-charge amount.
  2. Choose whether the amount excludes or includes VAT.
  3. Enter the VAT rate of the underlying sale.
  4. Press Calculate.

Notes

Amounts are rounded HALF_UP to two decimals. For VAT-inclusive input the base is found by division and VAT is the difference, so base + VAT equals the amount entered.

Sources

Frequently asked questions

4 questions

  1. Yes. Under VAT Law art. 24/c it is part of the base of the underlying supply and carries the same VAT rate.

Next step

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