Do foreign companies need VAT registration in Turkey?

It depends on the transaction model. In many B2B cases, VAT may be handled via reverse charge or withholding mechanisms, but certain supplies, local presence, or sector-specific activities can trigger registration or local compliance obligations.

What is the standard VAT rate in Turkey?

The standard VAT rate is commonly applied at 20%, with reduced rates used for specific goods and services. VAT rates can change, so a transaction-specific check is recommended.

Is VAT charged on exports from Turkey?

Export sales are generally treated as zero-rated, subject to meeting documentation and customs requirements.

How does reverse charge VAT work in Turkey?

In certain cross-border and service scenarios, VAT may be accounted for by the recipient in Turkey instead of the supplier, provided legal conditions are met.

Can foreign companies recover input VAT in Turkey?

VAT recovery may be possible depending on the supply chain, export status, documentation, and whether the transaction qualifies under refund mechanisms.

What are common VAT compliance risks for foreign businesses trading with Turkey?

Common risks include invoicing errors, incorrect VAT treatment (reverse charge or withholding), missing customs/export documentation, e-invoicing misalignment, and audit exposure.

VAT in Turkey for Foreign Companies (B2B) | Registration, Reverse Charge, Refunds

Quick Answer

For foreign companies trading with Turkey, VAT is not just about the rate. The key questions are VAT registration triggers, correct invoicing (including e-invoicing), reverse charge or withholding VAT treatment, and whether VAT can be recovered or refunded. A transaction-specific VAT mapping prevents costly mistakes and audit exposure.

VAT in Turkey for Foreign Companies (B2B)

If your company sells to Turkey, buys from Turkey, or operates a supply chain touching Turkey, VAT treatment must be structured correctly from day one. The biggest issues we see are not the VAT rate, but incorrect VAT liability allocation, invoicing errors, and missing documentary compliance.

What we typically clarify first

Do you need VAT registration in Turkey? Depends on the transaction model, local presence, and the nature of supplies.
Reverse charge or withholding VAT? The correct mechanism depends on the supply and parties.
Invoicing and e-invoicing alignment: invoice type, VAT wording, and document flow must match Turkish practice.
Exports and zero-rating: correct customs and supporting documents are essential for zero-rating and VAT recovery.
Audit risk: mismatched invoices, missing contracts, or wrong VAT codes can trigger assessments and penalties.

Common VAT Scenarios We Handle

Export sales from Turkey: structuring for zero-rating and refund readiness (documentation, timing, contract wording).
Services provided cross-border: checking reverse charge conditions and invoice language.
Local supplies or presence: assessing whether VAT registration, local invoicing, or representative steps apply.
Withholding VAT scenarios: reviewing who declares VAT and how it is documented.
Distributor or agent models: preventing VAT leakage and ensuring clean commercial + tax flow.

Deliverables (What You Get)

We provide a practical compliance roadmap tailored to your business model, not generic guidance.

Transaction VAT mapping (who charges VAT, who declares, which mechanism applies)
Invoice and contract wording checklist (including documentation flow for exports and services)
Risk memo highlighting audit red flags and mitigation steps
Implementation support (coordination with accountants where needed)

Book a VAT Compliance Call

If you share (i) your transaction flow, (ii) countries of parties, and (iii) sample invoice/contract, we can quickly identify whether you have a VAT registration trigger, reverse charge exposure, or refund opportunity.

Note

VAT rates and implementation rules can change. A transaction-specific check is recommended before execution.
This page is for general information and does not constitute tax or legal advice.

VAT Risk Check for Foreign Companies

Get a clear answer on VAT registration triggers, reverse charge or withholding VAT treatment, invoicing compliance, and refund readiness for your Turkey-related transactions.

Request a VAT Compliance Call

Back to Legal Glossary

VAT in Turkey

Quick Answer

VAT in Turkey for Foreign Companies (B2B)

What we typically clarify first

Common VAT Scenarios We Handle

Deliverables (What You Get)

Book a VAT Compliance Call

Note

Related Terms

Corporate Tax in Turkey

Withholding Tax

Double Tax Treaties

Customs Procedures

VAT Risk Check for Foreign Companies