VAT in Turkey guide

VAT rates

The term “taxable supplies” refers to supplies of goods and services subject to VAT. In Turkey, the following VAT rates apply:

• Standard rate: 18%
• Reduced rates: 1% and 8%.

The standard VAT rate applies to all supplies of goods or services, unless a specific measure provides for a reduced rate or exemption.

Turkish VAT for digital service providers

From 1 January 2018, distance sellers (i.e., no residence, business place, legal center and business center in Turkey) of electronic services to Turkish consumers (a B2C supply) are required to register for “Special VAT Registration for Electronic Service Providers“ and charge their clients with Turkish VAT. There is no registration threshold (i.e., all entities that make taxable supplies are obliged to register for VAT).

List of digital services that are the subject of Turkish VAT:

• Streaming video, music or gaming;
• E-books;
• Hosting websites;
• Broadcast TV or radio;
• Online telephony and data.
• Hosting websites;
• Broadcast TV or radio;
• Online telephony and data.

Late-registration penalties

In case of late registration, the following penalties could apply:

• Tax loss penalty;
• Late payment charge (interest);
• Irregularity penalty.