Vat Tax in Turkey (KDV) - Taxation System

KDV Tax in Turkey is the most common tax in the country; All commercial, industrial and professional transactions that take place on Turkish territory are subject to it.

In this article, we highlight the KDV tax and how it is calculated according to the type of goods and services.

What is VAT Tax in Turkey?

The KDV tax in Turkey is an abbreviation of the word Katma Değer Vergisi, which is paid by an individual on goods and services sold, and includes all commercial and industrial activities, in addition to goods that entered Turkey through imports.

How is VAT Calculated in Turkey?

The KDV tax is calculated at varying rates on spending, and is by deducting tax percentages from the selling price of the product.

Accordingly, the tax rate rises with the increase in selling prices of products, from the moment they leave the factory until they reach the consumer.

Goods and Services Subject to KDV Tax

This tax is deducted from the consumer in the end, although the producing companies pay the tax according to their profits from sales.

The tax value in Turkey is calculated at varying rates as follows: 1%, 8% and 18%, according to the necessity of the consumed goods, which we will explain in detail in the following points:

  • A tax of 1% is applied to wheat and its derivatives as basic consumables, in addition to real estate that does not exceed 150 square meters.
  • As for 8%, it is applied to basic consumer items, such as: legumes, eggs, milk and its derivatives, meat and its derivatives, and other products not related to luxury products.
  • The KDV tax is applied at a rate of 18% on non-consumable products and some exceptions are made for other consumable items, such as: furniture, mobile phones, electrical appliances, some animals, some spices and others.

Finally. If you want to know the full list of products and services that are subject to VAT in Turkey, or if you want to calculate the tax value of a service, do not hesitate to contact us at Trustus to get clear answers to all your inquiries.


Edited by: Trustus Consulting©

Trustus Group