VAT – Value Added Tax

Scope and Taxpayer

VAT Law entered into force in 1985. In general, VAT application is similar with other countries that use VAT system.

VAT is applied on the supply of goods and services in Turkey. Additionally, the importation of goods and services into Turkey is also subject to VAT. There are different rates applicable and some transactions are exempted from VAT.

VAT Rates in Turkey

Delivery of goods and services in Turkey is subject to VAT at the standard rate of 18%.

On the other hand, certain type of goods and services are subject to reduced VAT rates which are determined as 8% and 1%.


In the legislation, deliveries of goods and supply of services that fall under each reduced rate category is determined and could be updated by a Council of Ministers Decree. All other goods and services that are not defined as reduced rate fall under the general rate of 18%.


  • Most of the food products.
  • Raw leather, cotton,
  • Cotton, linen, synthetic etc. raw products (i.e. fibre) and clothes and accessories made of these
  • Products made of leather and imitation leather
  • Shoes, slippers, boots,
  • Bags, Luggages
  • Carpets and fabric floorings
  • Cash Register Devices
  • Books and similar publishings (including e-Books)
  • School materials (notebook, ruler, compass etc.)
  • Cinema, theater etc. enerance fees
  • Hospitality services
  • Some other specially determined products and services.


  • Some raw nuts and appetizers such as nuts, almonds, dried fruits etc.
  • Some agricultural products such as grain and pulse types
  • Wheat bread
  • Wholesalers delivery of furit and vegatable products
  • Newspaper and magazines,
  • Certain type of apartments
  • Funeral services
  • Deliveries for financial leasing purpose of certain machinery products
  • Religion Books

Some Exemptions:

  • Export Exemption: Export of goods and services is exempted from VAT. Please note that service export is limited by special requirements. This exemption is an exemption with deduction right.