Turkey
Effective from 1st January 2018 due to the modification made in Article 9(1) of Law No. 3065 with the Law dated 28/11/2017, No. 7061 on Modification in Some Tax Laws and Some Other Laws.
The VAT is related to services provided in an electronic environment by those that have no residence, business place, legal center, and business center in Turkey to real person non-VAT taxpayers shall be declared and paid by the providers of the service.
Provinces
Goods
Provinces
Goods
Digital services
About
Goods
About
Goods
About
Digital services
About
Digital services
Goods
Digital services
Goods
Digital services
VAT Standard rate
The standard VAT rate in Turkey in 2024 is 20%.VAT Reduced rates
1%- Certain products and services are eligible for the special reduced rate, including the supply of some agricultural products, funeral services, meat, and bread.
- Certain products and services are eligible for a special reduced rate, including clothing products, health care services;
- Pharmaceuticals and medical devices, and basic food.
VAT Standard rate
The standard VAT rate in Turkey in 2024 is 20%.VAT Reduced rate
- 1% (supply of newspapers or magazines electronically);
- 10% (supply of books and similar publications electronically).
VAT Standard rate
20%
VAT Reduced rate
10%, 1%
Thresholds
-
VAT registration threshold
There is no registration threshold in Turkey for local businesses. When a company sells goods remotely without a warehouse in Turkey to Turkish customers there is no obligation to register.Deductible VAT
The total amount of VAT taken as a deduction during a particular tax period is carried over to subsequent periods and is not refundable to the taxpayer. If goods or services were used to make taxable supplies in Turkey, VAT in input invoices might be credited. The exceptions are:- VAT on purchased goods and received services that are not subject to VAT;
- VAT related to lost goods, except for goods lost because of earthquakes, floods, and fires;
- VAT is paid on expenses that are not deductible in determining income;
- VAT not paid by the purchaser on receivables.
Registration procedure
Foreign companies selling goods (from a local warehouse) or providing services in Turkey must register with the tax authorities and obtain a VAT number. A foreign taxpayer must apply for VAT registration before starting a business. To register foreign companies not located in Turkey, they are required to appoint a tax representative residing in Turkey.VAT returns filing date
A VAT return must be filed every month within 26 days after the reporting month ends.VAT payment date
The VAT declared must be paid until the 26th night of the month that the declaration must be filed in. Payment can be made to tax offices and banks which are authorized to collect taxes or through the Turkish Revenue Administration’s website using debit cards of the banks which are authorized to collect taxes or credit cards.Penalties
The penalty for late payment is 2.5% for each month. The penalty for late filing of tax returns electronically is 10%. However, if the declaration is submitted later than 30 days after the end of the statutory period, the penalty will be 20%.Threshold
There’s no registration threshold.Pieces of evidence
- Address of the customer;
- The IP address of the device used to access the content;
- International dialing code;
- Credit card or other payment method address.
E-services list
- The supply of a website or webpage, domain name, web hosting, or other services related to a website or webpage;
- Distance maintenance of computer software and equipment, distance system management, and online data storage services;
- The sale of software and all digitalized products including accessing, downloading, and updating (including products such as antivirus programs, ad blocker programs, device drivers, and filters relating to websites and firewalls);
- Supply of images, texts, and information as well as the preparation of databases and similar services;
- Supply of music, movie, game (including gambling and change games), applications that release cultural, political, sports, art, scientific, and entertainment contents, and in-app purchases via computer, mobile phone, or similar devices;
- Supply of distance teaching;
- Radio and TV broadcasting services;
- Other services are supplied via the internet or other electronic network that are of a similar nature to the abovementioned services.
Registration procedure
Those who provide services in electronic environments for remuneration to real persons who have no VAT liability, without having a residence, business place, legal center, and business center in Turkey declare the VAT related to these services by registering for “Special VAT Registration for Electronic Service Providers”.VAT returns filing date
The taxpayers who are in the scope of Special VAT Registration for Electronic Service Providers declare the VAT related to services they provide to non-VAT taxpayers in Turkey in an electronic environment until the night of the 24th day of the month following the taxation term as per the monthly taxation terms of the calendar year. This declaration shall be filed with VAT Declaration No. 3 through the Internet tax office in Turkish Liras. In cases where the remuneration is calculated in foreign currency, the foreign currency must be converted into Turkish currency over the foreign currency buying rate of The Central Bank of The Republic of Turkey published in the Official Gazette on the date of the taxable event. For the foreign currencies which are not published in Official Gazette by The Central Bank, the current exchange rate is used to exchange into Turkish currency.VAT payment date
The VAT declared must be paid until the 26th night of the month that the declaration must be filed in. Payment can be made to tax offices and banks which are authorized to collect taxes or through the Turkish Revenue Administration’s website using debit cards of the banks which are authorized to collect taxes or credit cards.Penalties
Provisions of Law No. 213 on tax penalties shall be applied to taxpayers who fail to follow the regulations related to declaration obligation for services provided in an electronic environment.Keeping records
There are no specific requirements for the maintenance of VAT records.
Subscribe to the newsletter
No spam, only interesting news