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%.
- 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.