How vat / sales tax works in Turkey
Turkish VAT (KDV) defaults to 20% since July 2023, with 10% on restaurants, hotels, food, and transport and 1% on books, press, and basic staples.
Traders file monthly electronic returns, run GIB-mandated e-invoicing past turnover thresholds, and withhold VAT on defined transactions.
Exports zero-rate, financial, health, and education supplies are largely exempt, and non-resident digital sellers face collection rules.
Tax rates at a glance
- Standard VAT
- 20%
- Reduced VAT
- 10% / 1%
- Food and stays
- 10%
- Books and staples
- 1%
- Exports
- 0%
- Filing rhythm
- Monthly
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersManufacturersHospitality operatorsExpatsCross-border traders
Watch out for
- Lira volatility reprices VAT-inclusive contracts continuously, so currency clauses matter as much as rate mapping.
- Withholding VAT on defined transactions redirects remittance to counterparties, changing cash-flow modelling.
- Hospitality splits 10% food and stays against 20% alcohol and extras, with tourism volumes multiplying errors.
- E-invoicing thresholds pull growing traders into mandated issuance mid-year without notice.
Frequently asked questions
What is the VAT rate in Turkey?
Turkey applies 20% standard VAT in 2026, raised in July 2023, with 10% for food, stays, and transport and 1% for books and staples.
How often are Turkish VAT returns filed?
Monthly through electronic returns backed by GIB-mandated e-invoicing that validates every transaction.
Do foreign digital sellers collect Turkish VAT?
Yes on qualifying B2C digital supplies through dedicated collection tracks, with registration duties layered on crossing thresholds.