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VAT Withholding in Turkey: A High-Risk Tax Obligation

Turkey’s Finance Ministry can shift VAT payment responsibility to buyers for certain goods and services, a practice called “partial withholding.” This aims to secure tax collection. Buyers directly pay a portion of the VAT to the tax office, while sellers pay the rest. This applies to various services like construction, consulting, maintenance, food, labor, and transportation, with varying withholding rates.

Source: alomaliye.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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