This undergraduate thesis explains the transactions that are taxable in the value added tax system, their characteristics, the rules for calculating the value added tax and the exceptions that exist in addition to the rules. In the initial part of the undergraduate thesis, taxes are explained as one of the state's revenues and in the entire tax system they are the most important and generous public revenue that finances public expenditures. Taxable transactions that have been explained are supplies of goods, performance of services, acquisition of goods, tripartite business and import of goods. In order to better understand how taxation is carried out, the undergraduate thesis emphasizes the principles according to which goods and services are taxed, namely the principle of the country of origin and the principle of the country of destination. Given that taxation is closely related to the place of taxation, for each of the aforementioned taxable transactions, the place of taxation is determined, so the exceptions that exist for determining the place of performance of services are also specified. In the final part, it was pointed out that all provisions and the entire system are governed by the Value Added Tax Act and the Value Added Tax Ordinance, which are harmonized with the European Union Directives.