VAT pricing
How should I enter a VAT-inclusive or exclusive price?
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
- Kadayıf, cheese, sugar, pistachio, butter. Portion cost 33.55 TRY.
- Selling price 110.00 TRY, VAT-inclusive at 10%. Net = 110.00 / 1.10 = 100.00 TRY.
- 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.
- 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).
- 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.