Turkish VAT rates and VAT compliance

Turkish VAT rates

The VAT system in Turkey applies broadly to the supply of goods and services, as well as imports. The VAT regime includes standard and reduced rates, depending on the nature of the goods or services supplied.

Rate	Type	Which goods or services
20%	Standard	Most goods and services supplied in Turkey
10%	Reduced	Certain food products, passenger transportation, and cultural services
1%	Super-reduced	Basic agricultural products, newspapers, books, and medical equipment

Turkish VAT exemptions

Some supplies are exempt from VAT in Turkey. Common exemptions include:

Certain financial and banking services
Education and healthcare services
International transportation
Exports of goods and certain services (which are zero-rated)

Exempt supplies do not generate output VAT, and input VAT related exclusively to exempt activities is generally not recoverable.

Turkish VAT registration requirements

VAT registration is required for businesses engaging in taxable activities in Turkey.

Domestic businesses must register for VAT at the commencement of taxable activity. There is no minimum revenue threshold.
Nonresident (foreign) businesses may be required to register if they make taxable supplies in Turkey. This includes selling goods, providing services, or supplying digital content.
Foreign providers of digital services to Turkish consumers must register with the GİB and charge VAT from the first sale, regardless of physical presence.

Turkey does not offer VAT simplification thresholds comparable to the EU’s OSS/IOSS regimes.

Get more information on VAT registration in Turkey.

Turkish VAT returns requirements

VAT-registered businesses in Turkey must file monthly VAT returns. Returns must include:

Output VAT on taxable supplies
Input VAT on qualifying business purchases

Returns are filed electronically via the GİB Interactive Tax Office. In addition to monthly VAT filings, businesses may be required to comply with:

Electronic accounting and invoice reporting
Real-time e-Fatura (e-invoicing) and e-Arşiv submissions

Get more information on VAT returns in Turkey.

Storage of goods and consignment arrangements

Foreign businesses storing goods in Turkey must consider local VAT obligations.

Holding inventory in Turkey (e.g., in a warehouse or fulfilment centre) generally creates a taxable presence.
Imports of goods are subject to VAT at the point of customs clearance, usually payable by the importer of record.
Turkey does not operate a formal call-off stock or consignment relief regime similar to the EU.

Turkish import VAT

VAT is imposed on all imports of goods into Turkey at the time of customs clearance.

Import VAT is usually payable by the declared importer.
Registered businesses may recover import VAT as input tax, provided the goods are used for taxable activities and supporting documents are maintained.

Turkish VAT on digital services

Turkey imposes VAT on digital and electronically supplied services to Turkish consumers, even if supplied by nonresident businesses.

Digital services include SaaS, streaming, online gaming, advertising, and platform fees.
Nonresident providers must register through a simplified VAT registration portal with the GİB.
The standard 20% VAT rate applies.
Certain platforms may be required to withhold VAT on behalf of their nonresident suppliers.

Turkish VAT recovery mechanisms

Businesses registered for VAT in Turkey may recover VAT on expenses related to taxable supplies by offsetting input VAT against output VAT in their monthly returns.

Turkey does not have a standalone VAT refund scheme for non-established businesses like the EU’s 13th Directive. Instead, refunds are processed through the standard return and reconciliation process.

Excess input VAT may be:

Carried forward to future periods, or
Refunded, subject to formal application and approval by the tax authorities

Turkish export VAT relief (zero-rating)

Exports of goods and certain services to customers located outside Turkey are generally zero-rated for VAT purposes. This means exporters may charge 0% VAT but can still reclaim related input VAT, provided they meet documentation and compliance requirements.

Trade and customs reporting in Turkey

Trade activities must be declared through customs import/export declarations, overseen by the Ministry of Trade and integrated with the GİB for VAT monitoring.

VAT invoice and time-of-supply compliance

Turkey uses a mandatory e-invoicing system (e-Fatura and e-Arşiv) for VAT purposes.

Invoices must:

Be issued in XML format
Be validated through the GİB or an approved integration
Include the seller’s and buyer’s tax numbers, product/service codes, and VAT rates and amounts
Contain a digital signature and a unique identifier

Time of supply rules:

VAT is generally triggered when the invoice is issued or payment is received, depending on the transaction.
For imports, VAT is due at customs clearance.

Businesses must retain VAT invoices and related accounting records for at least five years. Monthly returns and payments are due by the 26th of the following month.

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