Turkey VAT (KDV) Guide for 2026: Rates, Registration & Filing

Turkey applies a standard 20% VAT (KDV) to most goods and services, including digital supplies. The rate rose from 18% to 20% on 10 July 2023.[2] Reduced rates of 10% and 1% apply to items such as basic foods, some medical products, and staple goods.[2] A 0% rate covers exports, and financial and insurance transactions fall outside VAT.[1] The tax authority is the Revenue Administration (Gelir Idaresi Baskanligi).[1]

Turkey has no general VAT registration threshold; resident businesses register when taxable activity begins [1]. Non-resident providers of electronic services to Turkish consumers must register under the special VAT regime for electronic service providers, with no threshold, and remit VAT from the first B2C sale; for B2B supplies the Turkish recipient applies the reverse charge [2].

Resident businesses file VAT monthly, generally by the 28th of the following month.[2] Non-resident digital providers file the electronic-services return (VAT No. 3) monthly, with the return and payment due by the 28th of the following month.[1] Turkey's e-Fatura and e-Arsiv systems are mandatory above set turnover levels, and from 1 January 2026 the value trigger for issuing electronic invoices was effectively removed, so nearly all invoices must be issued electronically.[1]

Exports of goods and services are zero-rated with full input-VAT recovery, and international transport and certain diplomatic supplies are exempt. Financial and insurance transactions fall outside VAT and are taxed separately.[2] SaaS and digital services supplied to Turkish customers are taxable at 20%, with a reverse charge (VAT No. 2) on B2B sales to registered businesses.[1]

Turkey has no US-style resale certificates. A VAT-registered business recovers the input VAT it pays on purchases and imports by deducting it from output VAT on its return, provided the purchases support taxable supplies and valid invoices are held [1]. Net VAT payable equals output VAT minus deductible input VAT, and excess input VAT is carried forward.

Late payment accrues monthly late-payment interest set by decree, and default interest applies to assessed tax over the delay period. Underdeclared tax generally draws a penalty equal to 100% of the lost tax, and e-invoicing failures trigger special irregularity fines.[2]

The Revenue Administration reviews returns and can open tax inspections, request records, and issue assessments where VAT is under-reported [1]. A taxpayer who disagrees with an assessment may pursue administrative settlement with the tax office and, if unresolved, appeal through the tax courts under the Tax Procedure Law [1].

• [1] Revenue Administration (GIB), Turkish Taxation System, https://www.gib.gov.tr/en/references-and-resources/turkish-taxation-system

• [2] Revenue Administration (GIB), VAT office for electronic service providers, https://digitalservice.gib.gov.tr

Verified July 2026 against Revenue Administration (GIB) guidance.