What is a freelance receipt and who issues it?

A freelance receipt (SMM) is a document issued by independent professionals (doctors, lawyers, engineers, tax consultants, etc.) in return for services. It is issued for work based on personal effort, knowledge, and expertise, done on one's own name and account. If you work under a company umbrella, you should issue an invoice, not a freelance receipt.

What is withholding tax and when is it applied?

Withholding is income tax that your client (payer) deducts and pays to the tax office on your behalf. If the client is a taxpayer institution/company, they withhold 20%. If you provide services to individuals (real persons), no withholding is applied. Withheld tax is offset in your annual income tax return. For example, for 10,000 TL gross service fee, 2,000 TL withholding is deducted.

What is VAT withholding and when is it applied?

VAT withholding is when certain buyer types (public, banks, insurance, etc.) declare part of the VAT to their own returns. Generally 50% (5/10) withholding applies to freelance services. So out of 1,000 TL VAT, you declare 500 TL and the buyer declares 500 TL. Regular companies and individuals do not apply withholding.

How to calculate from gross to net and net to gross?

Gross to net: Withholding and expenses are deducted from gross amount. Example: 10,000 TL gross, 20% withholding (2,000 TL), 20% expenses (2,000 TL) = 6,000 TL net. Net to gross: Net amount is converted to gross using formula. Example: To receive 6,000 TL net, required gross is calculated based on withholding and expense rates. Our calculator computes both directions automatically.

What is freelance expense rate?

When declaring freelance income, expense deduction is made at certain rates (lump sum expenses). This rate varies by profession: General professions 25%, health services 40%, software/engineering 20-40%. You can also declare your actual expenses with documentation. You can enter the expense rate yourself in the calculator.

What situations are VAT exempt in freelance receipts?

Some services are VAT exempt: Health services (doctor, dentist), education services, copyright income (writer, composer), services provided abroad (conditional). If exempt, no VAT is calculated and 'VAT exempt' note is written on invoice. Consult your tax consultant whether exempt.

Accounting-Tax-Reporting

Freelance Receipt Calculation

Self-employment receipt calculation with current rates. Easy Net to Gross, Gross to Net calculation.

Use this freelance receipt calculator to review gross amount, withholding and VAT step by step, then export the final net result as a report.

Legal Disclaimer

Calculation tools are for informational and preliminary calculation purposes only. Legislative changes may not be reflected immediately in the calculation tools available on the site. They are not binding in official declarations or legal proceedings. They do not replace financial consultancy or legal advice. For definitive results, you can contact me. ozcankutlu.com cannot be held responsible for damages arising from calculation errors or legislative changes.