As of September 2026, Turkey’s main VAT (KDV) rates are 20%, 10% and 1%. The 20% standard rate applies unless the supply is specifically included in List I (1%) or List II (10%), or a statutory exemption applies. A product name alone is not enough to choose the rate: the exact good or service, tariff or legal classification, transaction date and any special conditions must be checked.
Turkey calls VAT Katma Değer Vergisi (KDV). It generally applies to commercial, industrial, agricultural and professional supplies made in Turkey and to imports. For services, place-of-supply analysis also considers whether the service is performed in Turkey or enjoyed in Turkey. The supplier’s nationality or legal form does not by itself remove the transaction from Turkish VAT.
Turkey VAT rates at a glance
| Rate | When it applies | Control before invoicing |
|---|---|---|
| 20% | The standard rate for taxable supplies not included in the reduced-rate lists. | Confirm that no List I, List II or exemption provision applies. |
| 10% | Only supplies covered by List II and its conditions. | Match the exact legal description; do not rely on an informal sector label. |
| 1% | Only supplies covered by List I and its conditions. | Check classification, buyer, use, quantity or other conditions where the relevant entry requires them. |
The current rate decision published by the Turkish Revenue Administration confirms the 20% standard rate and the two reduced rates. Its annexes are detailed and are amended over time. That is why statements such as “all food,” “all accommodation,” “all healthcare” or “all property” carries one fixed rate are unsafe. Mixed supplies, bundled services, imports, second-hand goods and real-estate transactions can require a more specific analysis.
Practical rule: build a rate matrix from the official legal description of every recurring supply and store the supporting decision, list entry or ruling with the product master. Recheck the matrix when the product, contract or legislation changes.
Which VAT route applies to your transaction?
| Transaction | Likely VAT question | Next control |
|---|---|---|
| Domestic sale of goods or services | 20%, 10%, 1% or exemption? | Classify the supply and document the legal basis. |
| Import of goods | Import VAT and customs valuation | Reconcile customs records with the accounting and deductible-VAT records. |
| Service purchased from a non-resident | Does the Turkish customer account for VAT? | Test place of supply and the VAT 2 / reverse-charge rules. |
| Export of goods or qualifying service | Does a full exemption and refund right arise? | Prove the export and trace related input VAT. |
| Supply covered by partial VAT withholding | Who declares each part of the VAT? | Confirm the buyer, service category, threshold and withholding ratio. |
| Non-resident digital B2C supply | Does the special VAT 3 route apply? | Identify the customer status and Turkish-use facts. |
For the legal route and registration decision—not general rates—use VAT Registration in Turkey: Which Route Applies?. It separates a foreign-owned Turkish company, a non-resident with a Turkish establishment, cross-border B2B services and non-resident electronic services supplied to Turkish consumers.
How input and output VAT work
A VAT-registered business generally calculates output VAT on its taxable sales and deducts eligible input VAT documented on business purchases, subject to the VAT Law’s conditions and restrictions.
| Example for one period | Net amount | VAT |
|---|---|---|
| Taxable sales at 20% | TRY 100,000 | TRY 20,000 output VAT |
| Eligible purchases | — | TRY 12,000 deductible input VAT |
| VAT payable | — | TRY 8,000 |
If eligible input VAT were TRY 25,000 instead, the TRY 5,000 excess would generally carry forward to the next period. Excess input VAT is not automatically a cash refund. A refund is available only where the VAT Law creates a refund right—such as qualifying full exemptions or reduced-rate supplies—and only under the applicable procedure, evidence and limits.
Exemption, reduced rate and “outside scope” are not the same
| Treatment | Output VAT | Related input VAT |
|---|---|---|
| Taxable at 20%, 10% or 1% | Charged at the applicable rate. | May be deductible if the statutory conditions are met. |
| Full exemption (tam istisna) | No VAT is charged for the qualifying transaction. | Related input VAT may remain deductible and, if not absorbed, may be refundable under the relevant procedure. |
| Partial exemption (kısmi istisna) | No VAT is charged for the exempt transaction. | Related input VAT is generally not deductible unless a specific rule says otherwise; allocation may be required for shared costs. |
| Outside the scope of Turkish VAT | No Turkish output VAT because the transaction is outside the tax’s scope. | The consequence for related input VAT must be tested separately. |
Exports should therefore not be described only as “0% VAT.” Turkish law treats qualifying exports as a full exemption, and the refund outcome depends on the transaction, documentation and input-VAT calculation. For the exporter-specific process, evidence and cash-versus-offset decision, use VAT Refund in Turkey for Exporters.
VAT withholding (KDV tevkifatı) is a split declaration
Under partial VAT withholding, the supplier still calculates VAT on the invoice, but the designated buyer withholds the prescribed portion and declares it through VAT 2. The supplier declares the remaining portion through VAT 1. Applicability depends on the exact service or supply, the buyer’s status, the current transaction threshold and the ratio in force.
This is different from income-tax or corporate-tax withholding commonly called stopaj. Use VAT Withholding in Turkey: Tevkifat Guide for the KDV-specific buyer, invoice and declaration workflow.
VAT filing and payment deadlines in 2026
| Return | Standard filing deadline | Payment deadline |
|---|---|---|
| Ordinary monthly VAT return (VAT 1) | By 23:59 on the 28th of the following month | Within the filing period |
| VAT return as responsible party (VAT 2) | By 23:59 on the 25th of the following month | By the evening of the 25th of that month |
| Special VAT 3 for electronic-service suppliers | By 23:59 on the 28th of the following month | Within the filing period |
Deadline check: 25 September 2026. These standard dates follow the Revenue Administration’s declaration and payment deadline table. Check the applicable period for holidays and official extensions. Use the company tax calendar to coordinate VAT with other recurring filings; registration-route details remain in the separate VAT registration guide.
Invoice and digital-compliance controls
Correct VAT treatment must be visible in the underlying evidence—not only in the return. Before issuing or booking an invoice, verify:
- the supplier, customer and VAT/tax identification data;
- the taxable event and invoice date;
- the VAT base, including amounts that legally form part of the consideration;
- the correct rate, exemption code or withholding code and legal basis;
- whether the invoice belongs in e-Fatura, e-Arşiv or another required document route;
- whether input VAT is deductible, restricted, allocated or carried forward; and
- whether the invoice, declaration, ledger and payment data reconcile.
Being a VAT taxpayer does not automatically mean that every business must enter e-Fatura on day one. General turnover thresholds, sector/activity rules, voluntary entry and special triggers must be tested separately. See e-Fatura Registration in Turkey for that decision.
A safer monthly VAT close
- Lock the transaction population. Reconcile sales, purchases, imports, exports, credit notes and advances to the ledger.
- Run exception reports. Investigate missing tax numbers, unusual rates, manual invoices, negative lines and late documents.
- Recheck cross-border services. Determine where the service is used and whether VAT 2 or VAT 3 applies.
- Separate exemption types. Keep full-exemption, partial-exemption and outside-scope records distinct.
- Map deductible VAT. Exclude or allocate non-deductible items and retain evidence for the deduction period.
- Reconcile withholding. Match supplier and buyer treatment, codes and ratios.
- Approve and archive. Record reviewer sign-off, filing receipt, payment proof and the source data used.
A foreign shareholder does not create a separate VAT regime for a Turkish company. The company follows the same transaction-based analysis as other Turkish taxpayers. What changes is often the operating route: establishment, customer status, use of the service, import/export evidence and who is responsible for declaring the VAT.
Official sources used for this 2026 guide
- Turkish Revenue Administration: current VAT rates and annexed lists
- 2026 consolidated VAT General Application Communiqué
- Revenue Administration declaration and payment deadlines
- VAT Law No. 3065
Need a transaction-level VAT map? Workon can coordinate the operational setup around the applicable registration, invoice, withholding, return and evidence route, with transaction-specific VAT treatment and filing positions confirmed by the company’s licensed Turkish SMMM/CPA or other appropriately authorised tax professional.
Last reviewed: 17 September 2026. Filing and payment timing was rechecked against the Revenue Administration’s 2026 tax calendar and consolidated VAT communiqué. This guide provides general operational information on Turkish VAT. Transaction-specific VAT treatment is handled with the company’s licensed Turkish tax professional under the current official rules.
