Meta and Google ad invoices: 15% withholding and VAT return No. 2

If the amount charged to your card for Instagram, Facebook, Google or YouTube ads is invoiced by a company abroad, it creates two tax obligations in Türkiye: online advertising withholding and reverse-charge VAT. Both are declared by the buyer, that is, by you. Foreign advertising calculator

1. Withholding

• Basis: Presidential Decision No. 476 with Income Tax Law art. 94 and Corporate Tax Law art. 30.
• The rate on payments to advertising providers resident abroad is 15%.
• Automatic card charges, no withholding line on the invoice or the platform collecting the full amount do not remove the obligation.
• Because the platform collects the full amount without deducting tax, withholding is calculated by grossing up:

Withholding is declared on the withholding and premium service return. A double tax treaty does not automatically remove it; the certificate of residence and permanent establishment position are assessed together. Double taxation

2. VAT (return No. 2)

• For advertising services bought from a seller without a place of business, legal seat or management in Türkiye and used in Türkiye, the buyer declares all the VAT (full reverse charge).
• Rate 20%; according to Revenue Administration rulings, the base is the grossed-up amount including withholding.
• In the example: 117,647.06 × 20% = TRY 23,529.41.
• Deduction: from 2024, reverse-charge VAT can be deducted in the VAT return No. 1 for the period in which it is paid. Unpaid VAT-2 cannot be deducted.
• Foreign VAT on the invoice cannot be deducted like Turkish VAT.

Which company invoices?

The legal entities issuing invoices for the platforms (Ireland, Singapore, an intermediary agency in Türkiye etc.) can change over time. Check the seller's name, country and tax number on the invoice each period; services bought through an agency resident in Türkiye are taxed differently.

Document file

• Platform invoices and credit notes (correct buyer name and tax number)
• Card statements and bank movements; exchange rate table (Central Bank). Currency converter
• Agency agreement (if any)
• Withholding and VAT-2 calculation table, returns and accrual/payment documents

Common mistakes

• Not declaring withholding and VAT-2 at all because payment was by card.
• Calculating on the net amount without grossing up. Withholding calculator
• Deducting VAT-2 before paying it.
• Not correcting a wrong buyer name (personal account) on invoices; documents must be in the company's name.

Sources: Presidential Decision No. 476; Income Tax Law No. 193 art. 94; Corporate Tax Law No. 5520 arts. 15 and 30; VAT Law No. 3065 arts. 9 and 29; VAT General Implementation Communiqué (reverse-charge VAT and the payment condition for deduction); Revenue Administration rulings.