Knowledge Base

Account Credit VAT Mechanism: Balance Loading and Pricing Logic

The account credit loading system in the LivaProxy customer panel operates within the framework of legal VAT regulations in Turkey. This mechanism can be confusing, especially for users loading balance for the first time. In this article, we will examine in detail how VAT calculation is performed during the process of adding balance to account credit, how your credit is used when creating orders, and the actual payment logic.

Account Credit Loading and VAT Calculation Mechanism

When you add balance to your account credit in the LivaProxy system, although the amount you pay includes VAT, only the amount excluding VAT is reflected in your account. This practice is a standard application due to commercial invoice regulations and tax legislation in Turkey.

Practical Example: Loading 600 TRY Balance

When you want to load 600 TRY balance from the customer panel:

• Amount you will pay: 600 TRY (VAT included)
• VAT rate: 20% (Turkey standard VAT rate)
• Amount excluding VAT: 600 ÷ 1.20 = 500 TRY
• Credit reflected in your account: 500 TRY
• VAT amount: 100 TRY (transferred to treasury)

As you can see, when you pay 600 TRY, 500 TRY credit is loaded to your account. This is not incomplete loading, but the result of VAT deduction.

VAT Deduction When Creating Orders

When creating an order with your account credit, the system automatically deducts VAT from the product price. This way, your credit is used at full value.

Order Scenario

Let's assume you have 500 TRY credit in your account:

• Product price you want to order (VAT included): 600 TRY
• Product price excluding VAT: 600 ÷ 1.20 = 500 TRY
• VAT amount: 100 TRY
• Amount deducted from your account credit: 500 TRY (price excluding VAT)
• Result: Order is successfully completed

Thanks to this mechanism, you can purchase a product shown as 600 TRY with your 500 TRY credit. The system automatically calculates VAT and uses your credit based on the amount excluding VAT.

Why Is This System Used?

VAT declaration and collection is a legal requirement for commercial enterprises operating in Turkey. The account credit system reflects the amount excluding VAT for the following reasons:

• Legal compliance: VAT declaration is required for each transaction
• Invoice format: E-invoices and e-archive invoices show amounts excluding and including VAT separately
• Accounting standards: Revenue recording for businesses is done based on the amount excluding VAT
• Transparency: The customer can clearly see the VAT amount paid on the invoice

VAT Calculation Table for Different Balance Amounts

Points to Consider When Creating Orders with Account Credit

1. Price Display

The prices you see on product pages and in the cart screen are amounts including VAT. However, when paying with your account credit, the system automatically deducts VAT.

2. Insufficient Balance Check

When creating an order, the system compares the product's price excluding VAT with your account credit. For example:

• Your account credit: 400 TRY
• Product you want to order (VAT included): 600 TRY
• Product price excluding VAT: 500 TRY
• Result: Insufficient balance warning (100 TRY credit shortage)

3. Mixed Payment Option

If your account credit does not cover the product's price excluding VAT, you can complete the missing amount with credit card, wire transfer/EFT, or other payment methods.

VAT Rate Change Scenario

The VAT rate in Turkey can be changed by government decision. While the current VAT rate is 20%, in case of a rate change:

• The account credit loading mechanism will operate according to the new rate
• Your existing credit is not affected (stored as amount excluding VAT)
• The current VAT rate is applied when creating orders

VAT Display on E-Invoice and E-Archive Documents

VAT details appear as follows on invoices issued for your account credit loading or order creation transactions:

• Goods/Service Amount: Amount excluding VAT
• Calculated VAT (20%): Shown on a separate line
• Total Amount Including Taxes: Total including VAT

You can access your invoices from the "My Invoices" section in your customer panel and download them as e-archive invoices.

Frequently Asked Questions

Why do I only see 500 TRY credit when I load 600 TRY?

100 TRY of the 600 TRY you paid is the legal VAT deduction. 500 TRY, which is the amount excluding VAT, is reflected in your account. You can purchase products worth 600 TRY (VAT included) with this amount.

Where does the VAT amount go?

The VAT amount is declared and paid to the Treasury of the Republic of Turkey. LivaProxy collects VAT within the framework of its legal obligations and transfers it to the relevant authorities.

Can I buy a 600 TRY product with my 500 TRY credit?

Yes, you absolutely can. When creating an order, the system deducts the product's price excluding VAT (500 TRY) from your account. The price shown as 600 TRY is the amount including VAT.

Do I pay VAT separately when creating an order using account credit?

No. Since your account credit is already the amount with VAT deducted, the system automatically calculates VAT during the order and uses your credit accordingly. You do not need to make an additional payment.

Conclusion

The LivaProxy account credit system reflects balance excluding VAT in accordance with Turkish tax legislation. Although this mechanism may seem confusing at first glance, it actually works in favor of the customer. Your loaded credit is used at full value, and VAT is automatically taken into account when creating orders. Being able to purchase a product worth 600 TRY with your 500 TRY credit is an advantage provided by this system.

If you have any questions during the account credit loading and usage processes, you can contact our 24/7 support team through the support request form on our website or our WhatsApp support line.