In Turkey, “Non-Deductible VAT” refers to VAT that businesses cannot offset against their VAT liability due to legal restrictions, documentation issues, or the nature of the expense. Common cases include purchases without proper invoices, goods or services used for non-business purposes, or special categories like vehicles, disputed invoices, and losses. Read more

Foreign tourists in Turkey can claim a VAT refund on eligible purchases if they shop at participating stores, spend at least 120 TL, and take the goods out of the country within 3 months. To get the refund, they must obtain and complete a VAT refund form, keep the original receipt, and have the documents stamped by customs before departure. Read more

Effective 1 August 2025, Turkey revised its Special Consumption Tax (SCT) framework under Presidential Decision No. 10115, introducing a progressive SCT system for electric vehicles (EVs) and a flat 50% rate for off-road vehicles. EVs now face SCT rates ranging from 25% to 170%, depending on engine displacement and motor power, with no full exemptions despite their environmental benefits. Read more

On 31 July 2025, the Turkish Revenue Administration issued a draft Communiqué proposing significant amendments to the VAT General Implementation Communiqué. These proposed changes are part of the broader implementation of Law No. 7555, aimed at aligning VAT practices with the evolving economic landscape, with a plan to create better results in the tax area. Read more

Starting January 1, 2025, Turkish businesses must issue invoices for sales of 9,900 TL or more, while smaller transactions can be documented with a cash register receipt; for jewellers, the threshold is 29,700 TL. These updated limits, outlined in Tax Procedure Law Communiqué No. 577, aim to improve tax compliance and are automatically updated on POS devices. Read more

Turkey has passed a new law introducing major tax and financial reforms, including updated Special Consumption Tax (SCT) rates for vehicles, now ranging from 80% to 220% based on engine and motor specifications. Read more

Turkey has established a comprehensive e-tax framework that includes E-Invoicing, E-Archive, E-Ledger, and E-Delivery to enhance VAT oversight and combat tax fraud. These digital obligations, expanded over time and now applicable to businesses with turnover above 5 million TRY, require compliant systems (like SAP) to handle XML formats, customer eligibility checks, and real-time data submission to the Turkish Revenue Administration (GİB). Read more