[responsive_menu_pro]

VAT Rates in Turkey

Updated Turkish VAT rate tables

Welcome to our comprehensive resource for navigating VAT rates in Turkey. This page offers an organized table detailing the VAT rates applicable to a diverse array of products and services.

Designed for ease of use and precision, our guide categorizes each item under the appropriate VAT bracket—standard, reduced, or zero rate—providing you with accurate information essential for compliance and strategic financial planning. Currently Turkey has a standard VAT rate of 20%

Global VAT Compliance

VAT Rates in Turkey

Standard VAT rate
The standard VAT rate is the primary rate of VAT applied to goods and services within a country, covering most items except for certain specific goods and services that may qualify for a reduced rate. Some exceptions include essential items or goods and services that meet certain criteria outlined below. Turkey applies a standard VAT rate of 20%.
Reduced VAT rates Turkey has reduced rates of 10% and 1%.
Below are some goods and services eligible for a reduced value-added tax (VAT) rate:
Rate		Good or Services
10%		• Certain foods such as meat, milk, dairy products, and produce. • Textiles. • Footwear, bags, and other accessories. • Educational services provided by universities and private schools. • Tickets for cinema, opera, and ballet. • Medicines and medical products and services, including imports designated by the Ministry of Health. • Pharmaceutical raw materials. • Medical services and those provided in rest homes and facilities for disabled individuals. • Food catering in certain cafes, restaurants, and similar venues, excluding alcoholic beverages. • Municipal sewage services. • Specific machinery supplies for the agricultural, construction, and garment industries. • Certain types of residential housing. • Bridge tolls on bridges built under the build-operate-transfer model. • Select furniture supplies.
1%		• Certain types of residential housing supplies. • Specific unprocessed agricultural products, such as select dried and fresh fruits, nuts, seeds, and grains. • Wholesale distribution of chicken eggs and fish. • Wheat flour and bread products. • Frozen animal sperm. • Various types of secondhand vehicles. • Selected asphalt products. • Funeral services. • Leasing of transportation vehicles. • Construction services provided to cooperative societies. • Various financial leases and supplies of goods to leasing companies.
Exempt From VAT
• Exemptions for transactions involving the import and delivery of precious materials such as gold, silver, and gemstones including diamonds, rubies, emeralds, sapphires, and pearls, when conducted between members of the Turkish stock market. However, this exemption does not extend to transactions between non-members, or from a non-member to a member (or vice versa), and which are exempt with credit. • Imports of goods and services that are VAT-free domestically, including specific goods exempt from customs duties such as personal belongings brought by travelers and certain marketing and promotional items, for example, samples, models, free advertising publications, and items displayed at exhibitions or fairs. • Transactions involving the delivery of services, goods, and transport related to or from free trade zones for export purposes, including services. rendered within free trade zones. • Public services related to education and health sectors. • Water utilized for agricultural activities. • Various financial services, including banking, financing, and insurance (subject to a distinct tax on banking and insurance transactions). • The sale or lease of software and intangible assets to a VAT payer holding an investment incentive certificate. • Scrap materials including metal, plastic, rubber, paper, glass, as well as scrap and waste from textiles. • Specific provisions related to the supply of residences.
Zero rated
• Exports, related services, and international transport services including those at ports and airports for ships and aircraft. • Services provided to non-residents, such as roaming under international agreements, and healthcare including preventive, diagnostic, treatment, and rehabilitation services. • Services rendered outside Turkey by local providers (“exported services”). • Supplies to entities engaged in petroleum exploration, and to diplomatic bodies, consulates, tax-exempt international organizations, and their staff. • Sales of machinery and equipment to VAT payers with an investment incentive certificate, and similar sales to the Ministry of National Defense. • Infrastructure development in organized industrial zones, covering water, sewage, energy, and road projects. • R&D activities leading to patent registration, and sales of specific technology products in development zones, which are zero-rated with VAT deductions. • Supplies to charities such as schools and healthcare facilities, and sales of new and used print media, excluding adult content and non-print formats. • New machinery and equipment bought before December 31, 2024, for specified uses in manufacturing and R&D, if used for a minimum of three years.

There are more aspects to Turkey’s VAT rates and system that require a deeper analysis and understading. If you wish to get informed on how these rates affect your international business please send us an email or schedule a call with one of our experts.

If you wish to get quickly informed about all basic and reduced VAT rates in Europe or VAT rates in the World you can view our dedicated page by clicking on the respective title.

Last Updated: 08/05/2024

Disclaimer

The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax