# Türkiye: VAT (katma değer vergisi, KDV) (2026) v2.1

Turkish VAT is charged under the Katma Değer Vergisi Kanunu no. 3065 and collected by the Revenue Administration (GİB). The KDV General Implementation Communiqué (KDV Genel Uygulama Tebliği, KDVGUT) sets the detailed rules. Figures below come from the consolidated law on mevzuat.gov.tr, which includes the 2026 amending laws 7573, 7577, 7578, 7587 and 7590, from the consolidated KDVGUT, and from GİB's current table of filing and payment dates.

## Who this applies to

- **Taxable transactions** (art. 1): supplies of goods and services made in Türkiye in the course of commercial, industrial, agricultural or professional activity; imports of all goods and services; and listed other supplies (post and telecoms, broadcasting, gambling, shows with professional artists or athletes, auction sales, pipeline transport and others).
- **Made in Türkiye** (art. 6): goods are supplied in Türkiye if they are in Türkiye when delivered. Services are supplied in Türkiye if they are performed in Türkiye or used (benefited from) in Türkiye.
- **Who is liable** (art. 8): the supplier of the goods or services; the importer; the person letting property and rights listed in GVK art. 70; and anyone who shows VAT on an invoice without the right to do so (they must pay it).
- **No registration threshold.** Liability follows from making taxable supplies in the course of business (art. 1, 8). There is no turnover test in the law. Businesses taxed under the simple method (basit usul) for income tax are exempt under art. 17(4)(a) unless they opt out (KDVGUT V/B-1).
- **Foreign suppliers.** Where the supplier has no domicile, workplace, legal seat or business seat in Türkiye, the Turkish customer is made responsible for the VAT and pays it by reverse charge (art. 9(1); KDVGUT I/C-2.1.2.1). A foreign supplier of electronic services to Turkish individuals who are not VAT taxpayers registers and pays the VAT itself (art. 9(1)).
- **Out of this skill:** special consumption tax (ÖTV) and customs duty; full withholding (tam tevkifat); special VAT bases (özel matrah); investment incentive and tourism VAT refund schemes.

## Rates, bands and thresholds

| Item | Rate or amount | Year | Source |
|---|---|---|---|
| General rate (goods and services on no list) | 20% | 2026 | Decision 2007/13033 art. 1(1)(a) as amended by Presidential Decision 7346, in force 10 July 2023, https://www.resmigazete.gov.tr/eskiler/2023/07/20230707-11.pdf |
| Reduced rate, list (II) | 10% | 2026 | Decision 2007/13033 art. 1(1)(c) as amended by Decision 7346 |
| Reduced rate, list (I) | 1% | 2026 | Decision 2007/13033 art. 1(1)(b); GİB consolidated text of Decision 2007/13033 with lists (I) and (II), https://cdn.gib.gov.tr/api/gibportal-file/file/getFileResources?objectKey=arsiv%2Fyardim-kaynaklar%2Fyararli-bilgiler%2Fkdv-oranlari.pdf |
| Food and non-alcoholic drink served in restaurants, cafés, patisseries and takeaways (not bars, casinos, discos and similar) | 10% (alcoholic drinks 20%) | 2026 | Decision 2007/13033 list (II) item 24; KDVGUT, reduced-rate section |
| Partial withholding (kısmi tevkifat) by the buyer, main ratios | Construction 4/10; consulting, design and audit 9/10; labour supply 9/10; cleaning and garden care 9/10; repairs of machinery and vehicles 7/10; catering and events 5/10; freight transport 2/10; commercial advertising 3/10; scrap and waste 7/10; other services listed 5/10; other goods listed 2/10 | 2026 | KDVGUT I/C-2.1.3.2 and 2.1.3.3; GİB table of partial withholding ratios, https://cdn.gib.gov.tr/api/gibportal-file/file/getFileResources?objectKey=arsiv%2Fyardim-kaynaklar%2Fyararli-bilgiler%2Fkdvde-kismi-tevkifat-uygulamasinda-tevkifat-oranlari.pdf |
| Partial withholding does not apply if the VAT-inclusive amount does not exceed | TRY 12,000 (the 2026 invoice limit in VUK art. 232) | 2026 | KDVGUT I/C-2.1.3.4.1; VUK art. 232 with Communiqué 588 |
| Statutory rate the President may vary | 10% in the law, range 1% to four times | 2026 | KDV Law art. 28, https://www.mevzuat.gov.tr/MevzuatMetin/1.5.3065.pdf |
| Registration threshold | None | 2026 | KDV Law art. 1, 8 |
| Tax period | Calendar month for real-method taxpayers (quarters for some transport businesses, housing co-operatives and simple-method opt-ins) | 2026 | KDV Law art. 39; KDVGUT V/B-1 |
| Return no. 1 (KDV 1) | Filed by the 24th and paid by the 26th of the following month. Note: GİB's table gives the 28th, 23:59, for both (VUK Circular 149) | 2026 | KDV Law art. 41(1), 46(1); GİB filing table, https://cdn.gib.gov.tr/api/gibportal-file/file/getFileResources?objectKey=arsiv%2Fyardim-kaynaklar%2Fyararli-bilgiler%2FBeyannameVermeveOdemeSureleri.pdf |
| Return no. 2 (reverse charge and withholding, sorumlu sıfatıyla) | Filed by the 21st and paid by the 23rd of the following month. Note: GİB's table gives the 25th for both (VUK Circular 164) | 2026 | KDV Law art. 41(1), 46(1) as amended by Law 7491; KDVGUT; GİB filing table |
| Return no. 3 (foreign electronic service providers) | Filed by the 24th of the following month. Note: GİB's table gives the 28th, paid in the same period (VUK Circular 149) | 2026 | KDVGUT I/C-2.1.2.1.2.3; GİB filing table |
| Input VAT time limit | By the end of the calendar year after the year of the tax point | 2026 | KDV Law art. 29(3) |
| Refund claim for exempt supplies with deduction | By the end of the second calendar year after the transaction | 2026 | KDV Law art. 32 |
| Late-payment surcharge | 3.7% a month | 2026 | Law 6183 art. 51, Presidential Decision 10556, https://www.mevzuat.gov.tr/MevzuatMetin/1.5.6183.pdf |
| Missing invoice | 10% of the amount, at least TRY 17,000 for the first finding | 2026 | VUK art. 353(1), https://www.mevzuat.gov.tr/MevzuatMetin/1.5.213.pdf |

## The taxable base

**Exempt with the right to deduct.** Exports of goods and related services, services for customers abroad, toll processing for free-zone customers and inbound roaming are exempt, and the VAT on related purchases stays deductible (art. 11(1)(a), art. 32). A supply of goods is an export if it is made to a customer abroad (or in a free zone, or to a duty-free shop or authorised bonded warehouse) and the goods leave the Turkish customs area (art. 12(1)). A service is for a customer abroad only if the customer's domicile, workplace, legal seat and business seat are abroad (or it is a foreign branch of a Turkish firm acting on its own account) **and** the service is used abroad (art. 12(2)). Foreign passengers can recover VAT on goods they take out of the country (art. 11(1)(b)).

**What sits on the reduced-rate lists.** The lists are annexes to Decision 2007/13033. The main items, from GİB's consolidated text:

- **List (I), 1%:** basic food by customs tariff chapter: live animals, poultry, red meat, fish, milk and dairy, eggs, vegetables, fruit, nuts, coffee, tea and spices, cereals, flour and milled products, edible oils, prepared meat and fish, sugar and sugar confectionery, cocoa and chocolate, bread, pasta and bakery goods, prepared vegetables and fruit, other food preparations, water, vinegar and listed soft drinks. Also wheat, rice, pulses, olives, olive oil and other farm products; certified seeds and seedlings; newspapers and magazines (not electronic sales); used passenger cars (20% where the seller could deduct the VAT when buying the car, and for second-hand car dealers who bought at 20% or use the special base); dwellings in urban transformation projects under Law 6306, up to 150 m² net, and dwellings on land designed for housing by municipalities and TOKİ under 150 m² net; construction contracts for housing co-operatives and for social security bodies and municipalities (dwellings up to 150 m²); funeral services; certain leasing of exempt vehicles and incentive machinery; holy books; refurbished mobile phones. Food subject to special consumption tax (ÖTV) is taxed at 10%, not 1% (art. 1(3) of the Decision).
- **List (II), 10%:** cotton, wool, yarn and fabrics; clothing, leather goods, shoes, bags and carpets; toll textile and footwear work; cash registers and tachographs; newsprint and printing paper; printed books and school supplies (not e-books or tablets); education by universities and private schools, school transport and private dormitories; cinema, theatre, opera, ballet and museum tickets; vaccines and blood products; human medicines and special medical foods; plant protection products and veterinary medicines; human and animal health services and ambulances; medical devices and their hire (not goods subject to ÖTV or phones); restaurant and café services (above); hotel and similar overnight stays; care homes and orphanages; municipal waste-water services; listed agricultural machinery; build-operate-transfer bridge and tunnel tolls; LPG other than autogas; legal aid and certain lawyers' services in family, consumer, child and labour cases; furniture in listed tariff positions (seats, office, kitchen and bedroom furniture and others in item 33); electricity for households and farm irrigation; dwellings, for the part of the net area up to 150 m²; land and plots; toothbrushes, toothpaste and floss; sanitary pads and nappies (tariff 9619.00).
- Everything else is at 20%. The lists name goods by customs tariff position, so classify a product by its tariff code before applying a reduced rate.

**Splitting a VAT-inclusive amount.** Net = gross / 1.20 at 20%, gross / 1.10 at 10%, gross / 1.01 at 1%; the VAT is gross less net.

**Exempt without the right to deduct (main items).** Transactions within the scope of the banking and insurance transactions tax (BSMV) and insurance intermediaries' transactions with insurers (art. 17(4)(e)); lettings of immovable property that is not part of a business (art. 17(4)(d)); supplies by simple-method businesses (art. 17(4)(a)); sales by companies of participations held for at least two full years (art. 17(4)(r)). VAT on purchases used for exempt-without-deduction supplies is not deductible (art. 30(a)).

**Input VAT deduction** (art. 29). A taxpayer deducts, against the output VAT of the period: VAT shown on invoices for goods and services bought for the business; VAT paid on imports of goods and services; and, from the January 2024 period, VAT it declared and paid itself as the responsible party (reverse charge or withholding) (art. 29(1)(a), (b), (ç)). VAT declared on return no. 2 is deducted on the return no. 1 for the period in which it is paid. If return no. 2 is filed and paid on time and before return no. 1 for the same month, the VAT is deducted on that month's return no. 1 (KDVGUT III/C-1). The deduction must be taken in the period the invoice is entered in the books, and no later than the end of the calendar year after the tax point (art. 29(3)). If deductible VAT is more than output VAT, the excess is carried forward and is not refunded, except under the special rules for reduced-rate supplies and exempt supplies (art. 29(2), 32).

**Blocked input VAT** (art. 30). Not deductible: VAT on purchases for exempt-without-deduction supplies; VAT on passenger cars (binek otomobil) of the business, unless the business rents out or operates passenger cars; VAT on goods lost (except in declared disasters); VAT on expenses that are not deductible for income or corporate tax; and VAT on receivables written off as worthless and not paid by the buyer.

**Partial withholding (kısmi tevkifat).** For the services and goods listed in KDVGUT I/C-2.1.3.2 and 2.1.3.3, the buyer pays part of the VAT itself as the responsible party on return no. 2, and the seller declares only the rest. The buyers who must withhold are VAT taxpayers for some items, and a list of designated buyers (public bodies, banks, insurers, companies listed on Borsa İstanbul, organised industrial zones and others in KDVGUT I/C-2.1.3.1(b)) for others. Each item's section says which. Construction is withheld only where the buyer is a designated buyer, or a VAT taxpayer and the contract is TRY 5 million or more including VAT (KDVGUT I/C-2.1.3.2.1). Nothing is withheld where the VAT-inclusive amount is TRY 12,000 or less, and the amount cannot be split to avoid the limit (KDVGUT I/C-2.1.3.4.1). The ratios are in the rates table.

**Refunds.** VAT that cannot be deducted because of exports and other art. 11, 13, 14 and 15 exemptions is refunded, if claimed by the end of the second calendar year after the transaction (art. 32). The refund procedure and documents are in KDVGUT part IV and are not covered here.

## Deadlines and filing

- **Monthly return no. 1 (KDV 1).** The return is filed by the 24th of the following month and the VAT is paid by the 26th (art. 41(1), 46(1)). A taxpayer files even in a month with no taxable transactions (art. 40(3)).
  - Note: GİB's current table sets the 28th, 23:59, for both filing and payment, citing VUK Circular 149. GİB may move the last day of a filing or payment period by up to one month from the statutory date (VUK mükerrer art. 28). Source: GİB, Beyanname verme ve ödeme süreleri, read 2026-10-31.
- **Return no. 2 (KDV 2).** The Turkish buyer who must pay VAT as the responsible party (reverse charge on services from abroad, full or partial withholding) files return no. 2 for the month the transaction took place, and only in months with such transactions. It is filed by the 21st and paid by the 23rd of the following month (art. 41(1), 46(1), as amended by Law 7491 from 2024; KDVGUT). A late invoice from the supplier does not delay the filing (KDVGUT I/C-2.1.1.1).
  - Note: GİB's table sets the 25th of the following month for filing and payment, citing VUK Circular 164 (VUK mükerrer art. 28). Source: GİB, Beyanname verme ve ödeme süreleri, read 2026-10-31.
- **Return no. 3 (foreign e-service providers).** Filed by the 24th of the following month, in TRY, through the internet tax office; no return is needed for a month with nothing to declare (KDVGUT I/C-2.1.2.1.2.3).
  - Note: GİB's table sets the 28th, with payment in the same period, citing VUK Circular 149. Source: GİB, Beyanname verme ve ödeme süreleri, read 2026-10-31.
- **Ceasing business.** The return is filed by the 24th of the month after the business stops (art. 41(4)).
- **Imports.** VAT on imports is declared on the customs declaration and paid with customs duty (art. 40(4), 46(2)).

## Penalties and interest

- **Late return.** A first-degree irregularity (VUK art. 352): in 2026, TRY 35,000 for capital companies, TRY 17,000 for other first-class traders and professionals, TRY 8,700 for second-class traders (VUK table 1, Communiqué 588).
- **Tax loss.** One times the VAT lost; three times where fake or misleading documents are used; halved for a late return filed before an audit starts; increased by 50% for unregistered business (VUK art. 344).
- **Late payment.** 3.7% a month, daily for part months (Law 6183 art. 51).
- **Invoices.** For each invoice not issued or not received, or issued on paper when it had to be electronic, a special irregularity penalty of 10% of the amount, at least TRY 17,000 for the first finding in a calendar year (VUK art. 353(1)).

## Cross-border points

- **Services bought from abroad.** Services performed in Türkiye, or performed abroad but used in Türkiye, by a supplier with no domicile, workplace, legal seat or business seat in Türkiye are taxable. The Turkish customer computes VAT on the price and declares and pays it on return no. 2 (KDV Law art. 6(b), 9(1); KDVGUT I/C-2.1.2.1). It is then deductible as above.
- **Services sold abroad.** A Turkish business selling services to a customer abroad charges no VAT only if both tests in art. 12(2) are met: the customer is abroad and the service is used abroad. A service used in Türkiye is taxed at the normal rate even if the customer is foreign.
- **Foreign e-service providers to consumers.** A provider with no Turkish presence that sells electronic services to individuals who are not VAT taxpayers declares and pays the VAT itself on return no. 3 (art. 9(1); KDVGUT I/C-2.1.2.1.2).
- **Imports of goods.** Taxed at customs with customs duty (art. 46(2)). Deductible as import VAT (art. 29(1)(b)).
- **Foreign transport businesses and fair participants** may recover VAT on purchases for transport activity or for fairs and exhibitions, on a reciprocal basis (art. 11(1)(b)).

## Worked examples

### Example 1: Monthly return no. 1 with a carried-forward credit

A trading company in Istanbul sells goods for TRY 500,000 at 20% and restaurant meals for TRY 200,000 at 10% in March 2026 (net of VAT). Output VAT is TRY 100,000 plus TRY 20,000, so TRY 120,000. Its purchase invoices for March show TRY 60,000 of deductible VAT, and it carried forward TRY 5,000 of excess VAT from February. VAT payable for March is TRY 55,000. The return is due by 24 April 2026 and the tax by 26 April 2026 (GİB's table allows both until 28 April).

```oa-check
name: Monthly KDV 1, TRY 700,000 sales at 20% and 10% (March 2026)
inputs:
  sales_20: 500000
  sales_10: 200000
  input_vat: 60000
  carried_forward: 5000
steps:
  - output_vat: sales_20 * 0.20 + sales_10 * 0.10
  - payable: output_vat - input_vat - carried_forward
expected:
  output_vat: 120000
  payable: 55000
```

### Example 2: Reverse charge on a foreign service, and a passenger car

A software company sells TRY 300,000 of services to Turkish customers in May 2026 (20% output VAT, TRY 60,000). It buys a cloud service for TRY 100,000 from a supplier with no Turkish presence, used in Türkiye, so it must declare TRY 20,000 of VAT on return no. 2 by 21 June and pay it by 23 June (GİB's table allows both until 25 June). It has TRY 25,000 of VAT on domestic purchase invoices. It also buys a passenger car for the managers for TRY 1,000,000 plus TRY 200,000 VAT; that VAT is blocked by art. 30(b). Because return no. 2 is filed and paid on time and before return no. 1, the TRY 20,000 is deducted on the May return no. 1. Deductible VAT is TRY 45,000 and VAT payable on return no. 1 is TRY 15,000. Total VAT cash for May is TRY 35,000.

```oa-check
name: KDV 2 reverse charge plus blocked car VAT (May 2026)
inputs:
  sales_20: 300000
  domestic_input_vat: 25000
  foreign_service: 100000
  car_net: 1000000
steps:
  - output_vat: sales_20 * 0.20
  - reverse_charge_vat: foreign_service * 0.20
  - blocked_car_vat: car_net * 0.20
  - deductible_vat: domestic_input_vat + reverse_charge_vat
  - payable_kdv1: output_vat - deductible_vat
  - total_cash: reverse_charge_vat + payable_kdv1
expected:
  reverse_charge_vat: 20000
  blocked_car_vat: 200000
  deductible_vat: 45000
  payable_kdv1: 15000
  total_cash: 35000
```

## Ask the client first

1. Are you taxed under the real method (gerçek usul) or the simple method (basit usul) for income tax, and do you file monthly?
2. What do you sell, and are any of your goods or services on list (I) at 1% or list (II) at 10%?
3. Do you sell to customers abroad, and is the service used abroad? Do you have customs export declarations for goods?
4. Do you buy services from suppliers with no Turkish presence (software, advertising, cloud, consulting)? Were the 2 No.lu returns filed and paid on time?
5. Do you buy or lease passenger cars, or have expenses that are not deductible for income or corporate tax?
6. Do you have excess VAT carried forward, or a refund claim from exports?

## Sources

| Source | URL | Read on |
|---|---|---|
| Katma Değer Vergisi Kanunu no. 3065, consolidated (to Law 7590): arts. 1, 6, 8, 9, 11, 12, 17(4), 28, 29, 30, 32, 39, 40, 41, 46 | https://www.mevzuat.gov.tr/MevzuatMetin/1.5.3065.pdf | 2026-10-31 |
| GİB, Güncel KDV oranları: consolidated Decision 2007/13033 with lists (I) and (II), latest change shown Decision 9126 (in force 15 November 2024) | https://cdn.gib.gov.tr/api/gibportal-file/file/getFileResources?objectKey=arsiv%2Fyardim-kaynaklar%2Fyararli-bilgiler%2Fkdv-oranlari.pdf | 2026-10-31 |
| GİB, KDV'de kısmi tevkifat uygulamasında tevkifat oranları (partial withholding ratios) | https://cdn.gib.gov.tr/api/gibportal-file/file/getFileResources?objectKey=arsiv%2Fyardim-kaynaklar%2Fyararli-bilgiler%2Fkdvde-kismi-tevkifat-uygulamasinda-tevkifat-oranlari.pdf | 2026-10-31 |
| KDV Genel Uygulama Tebliği, consolidated: I/C-2.1 (withholding and reverse charge, including 2.1.2.1.2.3 and 2.1.3), III/C-1 (deduction), V/B-1 (tax period), reduced-rate section | https://www.mevzuat.gov.tr/File/GeneratePdf?mevzuatNo=19631&mevzuatTur=Teblig&mevzuatTertip=5 | 2026-10-31 |
| Presidential Decision 7346 amending Decision 2007/13033 (18% to 20%, 8% to 10%), Official Gazette 7 July 2023 no. 32241 | https://www.resmigazete.gov.tr/eskiler/2023/07/20230707-11.pdf | 2026-10-31 |
| GİB, Beyanname verme ve ödeme süreleri | https://cdn.gib.gov.tr/api/gibportal-file/file/getFileResources?objectKey=arsiv%2Fyardim-kaynaklar%2Fyararli-bilgiler%2FBeyannameVermeveOdemeSureleri.pdf | 2026-10-31 |
| Vergi Usul Kanunu no. 213, consolidated: arts. mükerrer 28, 232, 344, 352, 353, table 1 (2026 amounts, Communiqué 588) | https://www.mevzuat.gov.tr/MevzuatMetin/1.5.213.pdf | 2026-10-31 |
| Law 6183, art. 51 | https://www.mevzuat.gov.tr/MevzuatMetin/1.5.6183.pdf | 2026-10-31 |

Not yet confirmed: whether any Presidential Decision after Decision 9126 (November 2024) changed lists (I) or (II) (GİB's consolidated table shows none); the rate on domestic flights and city transport (the old version gave 10% and 1% without a source; neither is on the lists as read, which would put them at 20%); the e-invoice (e-Fatura) and e-archive thresholds under VUK Communiqué 509 (the old version said TRY 3 million); the return boxes on KDV 1 (the old version listed boxes 101 to 113 without a source); the full list of buyers and conditions for each partial withholding item, and full withholding (tam tevkifat); the export refund procedure, documents and the role of a YMM report; the input VAT rule for entertainment (the old version gave a 50% block without a source); exemptions for education, health, land and residential first sales; the transitional rules for dwellings with building permits before 1 April 2022 (Decision 5359); the capital goods adjustment; special bases (özel matrah) for used cars and gold; the tourism VAT refund to foreigners; the text of VUK Circulars 149 and 164 behind GİB's 28th and 25th dates (the power to move the dates is VUK mükerrer art. 28).

> Contributed by Michael Cutajar.