VAT pricing

How should I enter a VAT-inclusive or exclusive price?

1 min read

A menu price is often VAT-inclusive. Foodmarj builds food cost and gross margin on VAT-exclusive net sales. If you mark the price inclusive, net = selling / (1 + rate/100). If VAT is off, exclusive, or the rate is 0, net equals the amount you typed.

Formula

VAT-inclusive: net = selling / (1 + rate/100), half-up to kuruş. Exclusive, off, or rate 0: net = selling.

Food cost % = portion ÷ net × 100. Gross profit = net − portion. Channel profit is also on net. VAT is not added as a food-cost line.

Representative example: künefe

  1. Kadayıf, cheese, sugar, pistachio, butter. Portion cost 33.55 TRY.
  2. Selling price 110.00 TRY, VAT-inclusive at 10%. Net = 110.00 / 1.10 = 100.00 TRY.
  3. Food cost 33.55 TRY ÷ 100.00 TRY = 33.55%. Gross profit 66.45 TRY. The 110.00 ticket is not the food-cost denominator.
  4. Same portion, selling price 120.00 TRY, VAT-inclusive at 20%. Net is again 100.00 TRY. With VAT off and 100.00 TRY typed, the result is the same (100.00 TRY).
  5. Amounts are representative; they are not market data.

Common mistakes

  • Using VAT-inclusive turnover as the food-cost denominator. The percentage looks too good.
  • Adding VAT onto an ingredient line. VAT belongs on the selling-price side.
  • Guessing the rate. Use the rate on your ticket, or type a custom rate.

Questions

Which VAT rate should I enter?

The calculator accepts 1%, 10%, 20% or a custom rate. Use the rate on your ticket. No rate is recommended here.

What if I enter an exclusive selling price?

Net equals the amount you typed. Food cost and margin use that amount.

Source: Foodmarj. Published 16 October 2026. Updated 16 October 2026.

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VAT-inclusive vs exclusive menu pricing | Foodmarj