Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 18% | 1% and 8% | 0% (fully exempt) |
The local name for VAT in Turkey is Katma deger vergisi (KDV) .
Turkey has one standard VAT rate of 18%, and two reduced rates of 1% and 8%. In addition, Turkey also applies 0% to certain transactions (this is called “fully exempt” as no output VAT is due but input VAT can be claimed).
Recent developments
A few months ago, a 1% VAT rate was discussed for construction under urban transformation projects. In addition, a VAT refund limit for transactions subject to the reduced VAT rate was set at TRY 18,900 for the tax year 2021. Until May 31, 2021, Turkey applies a reduced VAT rate for certain goods and services. The special consumption tax rates on passenger cars was increased, while VAT on education services was reduced. For more information about (recent) rate change developments in Turkey, please click here.
Standard rate: 18%
The previous standard VAT rate in Turkey was 17% in 2000. It changed to the current level in 2001. This rate applies for all transactions that take place in .., unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
Turkey applies 0% (this is called “fully exempt” as no output VAT is due but input VAT can be claimed) to various exports of goods and related services, international transport, as well as supplies to persons engaged in petroleum exploration and to the Directorate of the Defense Industry.
Reduced rate: 1%
- Certain foodstuffs (e.g. cereals, legumes, agricultural products with high export potential (raisins, dried figs, dried apricots, etc.)
- Newspapers
- Magazines
Reduced rate: 8%
- Certain foodstuffs
- Admission to cinemas, theater, opera, operetta, ballet, and museum
- Pharmaceutical products
- Textile and apparel products
- Books (excluding e-books)
- Accommodation services
- Agricultural tools and equipment, some professional equipment, furniture
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on 26 April 2021.
