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.
|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|