Turkey VAT (KDV — Katma Değer Vergisi) Skill v2.0

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Section 1 — Quick reference

Field	Value
Country	Turkey (Türkiye Cumhuriyeti)
Tax	Katma Değer Vergisi (KDV)
Currency	TRY (Turkish Lira)
Standard rate	20% (effective 10 July 2023; previously 18%)
Reduced rates	10% (food, medicines, medical equipment, hotels, restaurants); 1% (basic foodstuffs, agricultural goods, residential property sales)
Zero rate	0% (exports, diplomatic supplies, international transport)
Exempt	Financial services, insurance, education, healthcare, land sales, certain capital market transactions
Registration threshold	No threshold — any business making taxable supplies must register
Tax authority	Gelir İdaresi Başkanlığı (GİB) — Revenue Administration
Filing portal	İnteraktif Vergi Dairesi — https://ivd.gib.gov.tr
Return form	KDV Beyannamesi (1 No'lu KDV Beyannamesi for monthly; 2 No'lu for withholding)
Filing frequency	Monthly (all registered businesses)
Deadline	28th of the following month (electronic filing via GİB)
E-invoice	e-Fatura mandatory for businesses exceeding TRY 3M annual turnover; e-Arşiv for others
Contributor	Open Accountants Community
Validated by	Pending — requires sign-off by a Turkey-licensed YMM (Yeminli Mali Müşavir)
Open-source credits	ozgurg/vergihesaplayici.com (AGPL-3.0, gelir vergisi calculator); mlevent/fatura (MIT, GİB e-Arşiv e-invoice); saidsurucu/borsapy (Apache-2.0, financial markets/fund tax categories); berkaygure/gelir-vergisi-kesintisi-hesaplama (income tax withholding brackets)
Skill version	2.0

Key return form boxes

Box	Meaning
101	Taxable sales at 20% (net)
102	Taxable sales at 10% (net)
103	Taxable sales at 1% (net)
104	Zero-rated exports (net)
105	Exempt supplies (net)
106	Total output KDV (calculated)
107	Input KDV deductible (purchases at 20%)
108	Input KDV deductible (purchases at 10%)
109	Input KDV deductible (purchases at 1%)
110	Reverse-charge KDV (services from abroad — 2 No'lu beyanname)
111	Total input KDV (calculated)
112	KDV payable (106 − 111; if positive)
113	Excess input KDV carried forward (if 111 > 106)

Conservative defaults

Ambiguity	Default
Unknown rate on a sale	20% standard
Unknown whether food qualifies for 10%	20% until confirmed
Unknown whether basic foodstuff qualifies for 1%	10% until confirmed
Unknown whether export documentation complete	Treat as domestic 20%
Unknown business-use % (vehicle, phone, home)	0% input credit
Unknown whether e-Fatura issued	Assume not issued — flag for compliance
Foreign digital service (B2B vs B2C)	B2B — buyer self-assesses via 2 No'lu beyanname

Red flag thresholds

Threshold	Value
HIGH single transaction	TRY 500,000
HIGH tax delta on single conservative default	TRY 50,000
MEDIUM counterparty concentration	>40% of output or input
MEDIUM conservative default count	>4 per return
LOW absolute net KDV position	TRY 1,000,000

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Section 2 — Required inputs and refusal catalogue

Required inputs

Before starting any Turkey KDV work, obtain:

1. GİB taxpayer number (Vergi Kimlik Numarası — VKN, 10 digits) or TC ID for sole traders
2. KDV registration certificate confirming registration status and type
3. Monthly bank statements in TRY (all accounts used for business)
4. e-Fatura / e-Arşiv Fatura downloads from GİB portal (gib.gov.tr/efatura) — XML or PDF
5. Supplier invoices with VKN, KDV rate, and ÖKC (POS) receipts for retail purchases
6. Import documents (Gümrük beyannamesi — customs declarations) for imported goods
7. Prior month KDV return (for carried-forward excess input credit)
8. 2 No'lu KDV beyannamesi data for any foreign digital/service purchases

Refusal catalogue

Refuse and escalate to a YMM for:

• Partial exemption calculations (businesses with mixed taxable/exempt supplies)
• KDV withholding (tevkifat) — special rules for construction, cleaning, security, scrap metal
• Intra-group transactions and transfer pricing KDV implications
• Tourism VAT refund scheme (Türkiye'ye gelen yabancılara KDV iadesi)
• Capital goods KDV adjustment scheme (Düzeltme)
• KDV exemption certificates (İstisna belgesi) for exporters
• Özel Matrah (special taxable base) — used for auctions, used vehicles, gold
• Investment incentive certificates (Yatırım Teşvik Belgesi) KDV exemptions

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Section 3 — Supplier pattern library

3.1 Banking and payment processors

Supplier	Typical description	KDV rate	Input credit
İş Bankası (Türkiye İş Bankası A.Ş.)	BSMV — Banka Sigorta Muameleleri Vergisi	Exempt (BSMV not KDV)	No
Garanti BBVA	Bank fees, wire transfer charges	Exempt	No
Akbank	Account maintenance, EFT fees	Exempt	No
Ziraat Bankası	State bank — loan interest, fees	Exempt	No
Halkbank	SME banking fees	Exempt	No
VakıfBank	Mortgage, commercial banking	Exempt	No
Yapı Kredi Bankası (YKB)	Credit card processing fees	Exempt	No
Papara	Digital wallet — transfer fees	Exempt (payment service)	No
İyzico	Payment gateway — commission	20%	Yes
PayTR	E-commerce payment processing	20%	Yes

3.2 Electricity and utilities

Supplier	Typical description	KDV rate	Input credit
TEDAŞ (Türkiye Elektrik Dağıtım A.Ş.)	Electricity distribution	20%	Yes (business use)
BAŞKENT EDAŞ / ENERJİSA	Electricity — Ankara/Central	20%	Yes (business use)
IGDAŞ / BAŞKENTGAZ	Natural gas — Istanbul/Ankara	20%	Yes (business use)
İSKİ (İstanbul Su ve Kanalizasyon İdaresi)	Water — Istanbul	1%	Yes (business use)
ASKİ (Ankara Su ve Kanalizasyon İdaresi)	Water — Ankara	1%	Yes (business use)

3.3 Telecommunications

Supplier	Typical description	KDV rate	Input credit
Turkcell	Mobile, data, roaming	20%	Yes (business use)
Vodafone Turkey	Mobile, business lines	20%	Yes (business use)
Türk Telekom	Fixed line, fiber internet, mobile	20%	Yes (business use)
Türksat	Satellite TV (if business subscription)	20%	Yes

3.4 Transport and travel

Supplier	Typical description	KDV rate	Input credit
Türk Hava Yolları (THY — Turkish Airlines)	Domestic flights	10%	Yes
Türk Hava Yolları (THY)	International flights	0% (export)	No input credit applicable
Pegasus Airlines	Domestic flights	10%	Yes
AnadoluJet	Domestic budget flights	10%	Yes
TCDD (Türkiye Cumhuriyeti Devlet Demiryolları)	Train tickets	10%	Yes
İstanbul Metro / Metrobüs (İETT)	Public transit — İstanbul	1%	Yes (business use)
Uber Turkey	Ride-hailing	10%	Yes (business use only)
BiTaksi	Turkish taxi app	10%	Yes (business use only)

3.5 Logistics and courier

Supplier	Typical description	KDV rate	Input credit
Yurtiçi Kargo	Domestic courier	20%	Yes
MNG Kargo	Domestic courier	20%	Yes
Aras Kargo	Domestic courier	20%	Yes
PTT Kargo (Posta ve Telgraf Teşkilatı)	State postal service	20%	Yes
DHL Turkey	International courier	0% (export) / 20% (domestic)	Yes
UPS Turkey	International courier	0% (export) / 20% (domestic)	Yes

3.6 Retail and office supplies

Supplier	Typical description	KDV rate	Input credit
BİM (Birleşik Mağazacılık)	Grocery — basic foodstuffs	1%/10% mixed	Partial
A101	Discount grocery retail	1%/10%/20% mixed	Partial
Migros	Supermarket — mixed goods	1%/10%/20% mixed	Partial
Teknosa	Electronics retailer	20%	Yes
Media Markt Turkey	Electronics	20%	Yes
Kırtasiyeci / Ofis Depot	Office supplies	20%	Yes

3.7 Software and digital services

Supplier	Typical description	KDV rate	Input credit
Foriba	e-Fatura integration platform	20%	Yes
Logo Yazılım	ERP/accounting software (Turkish)	20%	Yes
Mikro Yazılım	SME accounting software	20%	Yes
Nebim Winner	Retail ERP	20%	Yes
Microsoft Turkey (Azure, M365)	Cloud services — B2B	20% (buyer self-assesses)	Yes (via 2 No'lu)
Google Turkey (Workspace, Ads)	Digital services — B2B	20% (buyer self-assesses)	Yes (via 2 No'lu)
Zoom Turkey	Video conferencing — B2B	20% (buyer self-assesses)	Yes (via 2 No'lu)
Amazon Web Services (AWS) Turkey	Cloud — B2B	20% (buyer self-assesses)	Yes (via 2 No'lu)

3.8 Professional services

Supplier	Typical description	KDV rate	Input credit
Serbest Muhasebeci Mali Müşavir (SMMM)	Accounting and tax advisory	20%	Yes
Avukatlık bürosu	Legal services	20%	Yes
Mühendislik / Mimarlık bürosu	Engineering/architecture consulting	20%	Yes
Reklam ajansı	Advertising agency	20%	Yes
Yeminli Mali Müşavir (YMM)	Certified public accountant	20%	Yes

3.9 Insurance

Supplier	Typical description	KDV rate	Input credit
Allianz Turkey	Property, vehicle, liability insurance	Exempt (BSMV applies)	No
Axa Sigorta	Insurance premiums	Exempt	No
Güneş Sigorta	Insurance premiums	Exempt	No
Mapfre Turkey	Insurance premiums	Exempt	No

3.10 Healthcare

Supplier	Typical description	KDV rate	Input credit
Özel hastane (private hospital)	Medical treatment	Exempt	No
Eczane (pharmacy)	Medicines (prescription)	1%	Yes
Medikal malzeme (medical devices)	Medical equipment	10%	Yes

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Section 4 — Worked examples

Example 1 — Standard KDV on domestic sale

Scenario: IT consulting firm (İstanbul) issues invoice to Turkish corporate client.

Bank statement line (Garanti BBVA format):

Tarih       : 15/04/2025
İşlem       : Havale/EFT Alındı
Açıklama    : YAZILIM DANIŞMANLIK HİZMETİ - FATURA NO: YD-2025-041
Tutar       : +240.000,00 TRY

Working:

• Invoice net: TRY 200,000.00
• KDV 20%: TRY 40,000.00
• Invoice total: TRY 240,000.00
• Return entry: Box 101 — TRY 200,000 | Output KDV: TRY 40,000

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Example 2 — Reverse-charge on foreign digital service (2 No'lu)

Scenario: Company subscribes to Microsoft Azure (monthly billing from Ireland entity).

Bank statement line (İş Bankası format):

Tarih       : 01/04/2025
İşlem Türü  : Yurt Dışı Ödeme
Alıcı       : MICROSOFT IRELAND OPERATIONS LTD
Açıklama    : AZURE CLOUD SERVICES - INV#MS-2025-04
Tutar       : -18.000,00 TRY

Working:

• Service: cloud hosting from foreign provider — taxable in Turkey where customer is established
• File 2 No'lu KDV Beyannamesi: Box 110 — TRY 18,000 base; KDV 20% = TRY 3,600
• Simultaneously claim TRY 3,600 as input in 1 No'lu return (net zero effect for fully taxable business)

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Example 3 — Reduced rate (10%) restaurant purchase

Scenario: Client pays restaurant bill for business lunch.

Bank statement line (Yapı Kredi format):

Tarih       : 12/04/2025
Kanal       : POS
Açıklama    : ASITANE RESTAURANT ISTANBUL
Tutar       : -2.200,00 TRY

Working:

• Receipt shows: net TRY 2,000 + KDV 10% TRY 200 = TRY 2,200
• Input KDV: TRY 200 — deductible if business meal documented with attendees
• Return entry: Box 108 — TRY 2,000 purchase; Input KDV TRY 200

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Example 4 — Domestic export (0%)

Scenario: Software company exports SaaS to a US client. Payment received from abroad.

Bank statement line (Akbank format):

Tarih       : 20/04/2025
İşlem       : Swift / Döviz Alındı
Açıklama    : ABC TECHNOLOGIES INC USA - SAAS SUBSCRIPTION APR2025
Tutar       : +750.000,00 TRY (USD 25.000)

Working:

• Export of service to non-Turkey entity used and enjoyed outside Turkey — 0% KDV
• Requires export declaration or service export exemption certificate (İhracat istisnası belgesi)
• Return entry: Box 104 — TRY 750,000 | KDV: TRY 0

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Example 5 — Mixed invoice (1% basic food + 20% non-food)

Scenario: Client purchases groceries and cleaning products from BİM.

Bank statement line (Ziraat format):

Tarih       : 08/04/2025
Kanal       : POS Hareketi
Açıklama    : BIM MAGAZALAR A.S. ISTANBUL
Tutar       : -3.500,00 TRY

Working:

• Fiscal receipt (ÖKC) shows: bread/rice/vegetables TRY 2,000 × 1% KDV = TRY 20; cleaning supplies TRY 1,480 × 20% KDV = TRY 296; Total TRY 3,500
• Input credit if business: TRY 316 (split between Box 109 and Box 107)
• If ÖKC receipt not available: 0% input credit — conservative default

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Example 6 — Electricity bill (business premises)

Scenario: Office electricity from ENERJİSA for April 2025.

Bank statement line (Halkbank format):

Tarih       : 25/04/2025
İşlem       : Otomatik Ödeme
Açıklama    : ENERJİSA ELEKTRIK PERAKENDE SATIS — NISAN 2025 FATURU
Tutar       : -36.000,00 TRY

Working:

• e-Fatura from GİB portal: net TRY 30,000 + KDV 20% TRY 6,000 = TRY 36,000
• 100% business use (office premises) — full input credit
• Return entry: Box 107 — TRY 30,000 | Input KDV: TRY 6,000

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Section 5 — Tier 1 rules (compressed)

Rate assignment:

• 20% standard: most goods and services not listed below
• 10%: food/non-alcoholic beverages (restaurant/café service), hotels, medicines, medical equipment, domestic airline tickets, train tickets, tourism services
• 1%: basic foodstuffs (bread, rice, pasta, flour, sugar, salt, fresh fruit/veg), residential property first sale, agricultural goods
• 0%: exports of goods with customs declaration, services exported to non-residents used outside Turkey, international transport
• Exempt: financial services (BSMV applies instead), insurance (BSMV), medical treatment, education, leasing of residential property, land sales, social services

Input credit:

• Credit allowed on all taxable purchases used for taxable business activities
• No credit on exempt purchases (e.g., financial services)
• No credit on personal/non-business expenditure
• Vehicle purchase: input credit blocked for private passenger cars (binek otomobil); allowed for commercial vehicles (ticari araç)
• Entertainment: fully deductible if documented; 50% blocked if personal element present
• 2 No'lu reverse-charge: output and input net to zero for fully taxable businesses

Filing mechanics:

• File 1 No'lu KDV Beyannamesi monthly via GİB İnteraktif Vergi Dairesi by 28th
• File 2 No'lu KDV Beyannamesi in same month as the foreign service payment
• e-Fatura mandatory above TRY 3M annual turnover — use Foriba, Logo, or GİB's free portal
• Excess input KDV carries forward indefinitely (refund rarely granted for domestic supplies)
• Export KDV refund (iade): available for exporters with sustained credit position — requires YMM certification

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Section 6 — Tier 2 catalogue (genuinely data-unknowable items)

These items require specific facts from the client before classification. Do not guess.

Item	Why unknowable	What to ask
Vehicle purchase/lease	Binek otomobil (private car) has blocked input KDV; ticari araç (commercial) does not — requires registration document (ruhsat)	"What is the vehicle's registration type — binek or ticari? Provide ruhsat."
Home office expenses	KDV input credit only for business portion — ratio unknown	"What % of your home is used exclusively for business?"
Mobile phone contract	Personal vs business use split	"Is this a dedicated business line? What % business use?"
Restaurant/entertainment	Documentation requirements — must prove business purpose and attendees	"Who attended? What was the business purpose?"
Mixed-use property purchase	Residential (exempt) vs commercial (taxable) classification	"Is the property classified as residential or commercial in the tapu (title deed)?"
Export qualification	Whether service actually used and enjoyed outside Turkey	"Where is the client located? Do you have evidence they used the service outside Turkey?"
Software subscription (foreign)	B2B (buyer self-assesses) vs B2C — depends on whether buyer is a KDV-registered business	"Does the supplier have your VKN on file? Are you receiving a B2B invoice?"
Agricultural goods	1% rate applies only to specific listed products — item detail needed	"What specific agricultural products were purchased? Provide itemised receipt."

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Section 7 — Excel working paper

Columns: Date | Supplier Name | VKN | Invoice No | e-Fatura? (Y/N) | Net Amount (TRY) | KDV Rate % | KDV Amount (TRY) | Return Box | Input/Output | Tier 2 flag | Notes

Tab structure:

1. Output_Sales — all sales by KDV rate
2. Input_Purchases_Local — domestic purchases
3. Input_ReverseCharge — foreign services (2 No'lu)
4. KDV_Summary — box totals feeding into beyanname
5. Tier2_Items — flagged items awaiting client response

Key formula (Box 112 — KDV payable):

=IF(Total_Output_KDV - Total_Input_KDV > 0, Total_Output_KDV - Total_Input_KDV, 0)

Key formula (Box 113 — excess credit c/f):

=IF(Total_Input_KDV - Total_Output_KDV > 0, Total_Input_KDV - Total_Output_KDV, 0)

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Section 8 — Bank statement reading guide

Garanti BBVA format

Tarih       : 15/04/2025
İşlem       : Havale/EFT Alındı
Açıklama    : YAZILIM DANIŞMANLIK HİZMETİ - FATURA NO: YD-2025-041
Tutar       : +240.000,00 TRY

Fields: Tarih (date) | İşlem (transaction type) | Açıklama (description) | Tutar (amount, TRY, comma = decimal)

İş Bankası format

Tarih       : 15/04/2025
İşlem Türü  : Havale Alındı
Açıklama    : DANISMANLIK HIZMET BEDELI FATURA 041/2025
Tutar       : +240.000,00 TRY
Bakiye      : 1.240.000,00 TRY

Ziraat Bankası format

Tarih       : 15/04/2025
Kanal       : EFT/Havale
Açıklama    : TICARI DANISMANLIK HIZMETI
Tutar       : +240.000,00 TRY

Key patterns:

• Turkish number format: Period = thousands separator; comma = decimal (TRY 240.000,00 = TRY 240,000.00)
• POS transactions: Usually show merchant name + city — match to receipt for KDV rate
• Yurt Dışı Ödeme: Foreign payment — check if reverse-charge applies (2 No'lu)
• Otomatik Ödeme: Direct debit — utility bills, subscriptions; match to e-Fatura
• EFT/Havale Alındı: Domestic wire received — match to issued invoice

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Section 9 — Onboarding fallback

When client cannot provide e-Fatura / ÖKC receipts:

1. Use bank statement amounts as total (KDV-inclusive) and back-calculate:
   • Net = Total ÷ 1.20 (for 20% rate)
   • Net = Total ÷ 1.10 (for 10% rate)
   • Net = Total ÷ 1.01 (for 1% rate)
2. Apply conservative default for all unverified items: 20% output; 0% input credit
3. Flag every conservative default in the Tier2_Items tab
4. Issue a one-page data request to client listing missing e-Fatura references
5. For clients above TRY 3M turnover missing e-Fatura: escalate — non-compliance risk (GİB can impose penalties of TRY 10,000+ per missing e-Fatura)

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Section 10 — Reference material

Resource	URL / Reference
GİB İnteraktif Vergi Dairesi (filing portal)	https://ivd.gib.gov.tr
KDV Kanunu (KDV Law No. 3065)	gib.gov.tr — Mevzuat section
e-Fatura portal	https://www.efatura.gov.tr
KDV rates table (GİB)	gib.gov.tr/kdv-oranlari
KDV Genel Uygulama Tebliği	Official Gazette — KDV implementation circular
2 No'lu KDV Beyannamesi guide	GİB official guidance on reverse-charge

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Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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