VAT Refund in Turkey (for businesses)

Principles of Value Added Tax (VAT) in Turkey is very similar with most of other countries using VAT system. VAT is a tax levied on deliveries of goods and services that are supplied in Turkey. Additionally, importation of goods and services is also subject to VAT.

VAT is calculated monthly for most companies (except the special case of small businesses). In the monthly VAT return, all output VAT is offset against input VAT of that month. If output VAT of the month is higher than the input VAT of the same month, the difference is paid to the tax office. On contrary, if the input VAT of the month is higher than the output VAT, the difference is carried forward to deduct from future VAT payables.

In Turkey, carried forward VAT may only be refundable if it was caused due to a limitation of VAT on the sales transactions such as;

  • Sales with VAT exemption (ones that save the deduction right)
  • Sales with reduced VAT rate
  • Sales with withholding VAT

If you have any queries about if your business is eligable to get VAT refund or how to receive it, we can help you on these. Please contact us for your further queries.