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Practical Calculation of All Tax Rates

27/12/2023

We will provide examples of the application of VAT and other types of taxes, focusing on understanding and managing tax calculations for e-commerce businesses in Turkey.

Practical Calculation of All Tax Rates
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E-commerce businesses operating in Turkey play an active role in digital markets with a wide customer base and are growing rapidly. However, to be successful in this dynamic industry, it is not enough to focus only on sales strategies; Effective management is also required in tax matters.

In this article, we will provide examples of the application of VAT and other types of taxes, focusing on understanding and managing tax calculations for e-commerce businesses in Turkey.

1.VAT and E-Commerce Calculation:

E-commerce businesses in Turkey generally face the standard VAT rate of 18%. For example, when an e-commerce company sells a product worth TL 1,000, the VAT amount is calculated as follows: 1,000 * 0.18 = TL 180. The customer will pay 1,180 TL in total. Example: When a clothing e-commerce site sells a product worth 500 TL, the VAT amount will be 500 * 0.18 = 90 TL. The customer will pay 590 TL in total.

2.Income Tax Calculation:

E-commerce businesses are generally subject to income tax on their business profits. For example, if an e-commerce company has to pay 20% of its annual profit as income tax, the tax on 100,000 TL profit is calculated as follows: 100,000 * 0.20 = 20,000 TL. Example: If another e-commerce business has to pay 25% of its annual profit as income tax, the tax on 150,000 TL profit will be 150,000 * 0.25 = 37,500 TL.

3.Corporate Tax Calculation:

E-commerce companies are generally subject to corporate tax. For example, if an e-commerce business has to pay 22% of its annual profit as corporate tax, the tax on 200,000 TL profit is calculated as follows: 200,000 * 0.22 = 44,000 TL. Example: If another e-commerce business has to pay 18% of its annual profit as corporate tax, the tax on 300,000 TL profit will be 300,000 * 0.18 = 54,000 TL.

4.Special Consumption Tax (SCT) Calculation:

E-commerce businesses may be subject to Special Consumption Tax on certain product categories. For example, when an electronic e-commerce site sells a luxury camera and the SCT rate is 10%, the amount of SCT added for the camera worth 5,000 TL will be 5,000 * 0.10 = 500 TL. Example: A sporting goods e-commerce site should check whether the profits from sports equipment sales are subject to Special Consumption Tax. For example, when SCT exemption is applied, there may be no need to pay additional SCT. E-commerce businesses in Turkey must manage tax calculations correctly and use accounting systems effectively. Additionally, following local tax regulations and getting support from tax advisors plays an important role in ensuring business tax compliance. Accurate tax calculations ensure legal compliance and ensure the financial success of businesses.

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