Turkey VAT compliance and rates

Turkey VAT compliance

There are detailed rules controlling the recording and processing of Turkish transactions. These include guidelines on:

  • Turkish invoice requirements;
  • Foreign currency reporting and translation;
  • Credit notes and corrections; and
  • What accounting records must be maintained.

Turkish VAT returns

Periodic VAT returns must be submitted by all companies with a Turkish VAT number, detailing all taxable supplies (sales) and inputs (costs).

Returns are generally filed monthly. Returns are due by the 24th of the month following the period end, and any associated liability by the 26th.

Companies can opt to file VAT returns online or on paper.

 Vat refunds in Turkey

In certain circumstances, is can be possible for a non-resident company to apply for a VAT refund in Turkey. From 2003, Turkish VAT Law states that an application can be made for the recovery of VAT incurred on purchases of the following:

  • goods and services relating to transportation activities; and
  • goods and services relating to participation in fairs and exhibitions.

In order to apply for a VAT refund, the country of residence of the company must have a reciprocal agreement in place with Turkey. However the Turkish Tax Authorities have not published which countries this applies to, and there is no certainty that a claim will be accepted.

VAT rates in Turkey

The standard rate of VAT is 18%. There is also a reduced rate of 8% applied to: basic foodstuffs; medical products; books; and other, and a super-reduced rate of 1% applied to: agricultural products; certain residential properties; newspapers & periodicals; and other.

Turkey VAT rates

Rate Type Which goods or services
18% Standard E-books; all other taxable goods and services
8% Reduced Certain basic foodstuffs; pharmaceutical products; books (excluding e-books); medical products
1% Reduced Newspapers and magazines; some basic foodstuffs.
0% Zero Exports of goods and related services

Latest Turkish news

Turkey cuts VAT on books

Feb 19, 2019

Turkey is proposing to reduce the VAT rate on printed books from 18% to nil. This includes journals. The measure, Article 13 of the VAT Act. is currently with parliament.

Turkey hikes VAT on e-books

Dec 27, 2018

Turkey has raised the Value Added Tax rate on electronic books and online journals from the 1% and 8% reduced rates, respectively, to the standard rate of 18%. The change is contained within Presidential Decree 475.

Turkey VAT updates

March 7, 2018

Turkey has proposed a range of changes to its VAT law, including: VAT credits will be paid within 12 months or 3 months if...