is when Turkey’s VAT law was introduced, making it one of the oldest modern systems outside Europe.
This guide provides an overview of VAT in Turkey, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Turkey.
is when Turkey’s VAT law was introduced, making it one of the oldest modern systems outside Europe.
Foreign businesses that incur VAT on eligible expenses in Turkey may be able to reclaim it.
Doing business in Turkey? You’ll need to play by the rules of the Turkish VAT Law No. 3065.
The VAT law in Turkey does not include any provisions for voluntary VAT registration.
Turkey applies VAT on digital services based on the consumer’s location, and foreign businesses providing digital services to Turkish customers must comply with VAT requirements.
In addition to the standard Turkey VAT rate, there are also two reduced Turkey VAT rates of 10% and 1% (following the Turkey VAT rate increase in July 2023). The expenses that are typically claimable as part of a Turkey VAT refund is generally subject to VAT at the standard Turkey VAT rate except for Food, drink and Restaurant services which are subject to VAT at the reduced Turkey VAT rate of 10%.
A business would be able to claim a Turkey VAT refund if the entity is not registered for VAT in Turkey (and as such does not have a Turkey VAT number) and if it does not make any taxable supplies that are subject to VAT in Turkey. Additionally, the business would need to be established in a country that allows reciprocal treatment of Turkish businesses in relation to VAT refunds. It is also very important to note that only VAT on expenses relating to the participation of the business in a fair or exhibition in Turkey, or for fuel, vehicle spare parts, vehicle maintenance and repairs and highway tolls are claimable in a Turkey VAT refund.
If Turkey VAT has been charged incorrectly on an invoice, the invoice would generally not be claimable as part of a Turkey VAT refund. In this instance, the entity would need to reach out to the supplier to have the incorrectly charged Turkey VAT refunded. This is something that VAT IT would be able to assist with.
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