Who pays?
VAT is economically borne by the final consumer but declared and paid by the seller. Each business deducts the VAT it paid on purchases from the VAT charged on sales and pays only the difference, so the tax is collected piece by piece along the chain.
Example chain (20% VAT):
| Stage | Sale (excl. VAT) | VAT charged | VAT deducted | VAT paid |
|---|---|---|---|---|
| Producer | TRY 1,000 | TRY 200 | TRY 0 | TRY 200 |
| Wholesaler | TRY 1,500 | TRY 300 | TRY 200 | TRY 100 |
| Retailer | TRY 2,000 | TRY 400 | TRY 300 | TRY 100 |
| Consumer pays | TRY 400 in total |
Rates (2026)
| Rate | Main scope |
|---|---|
| 1% | Some basic foods (bread, flour etc.), newspapers and magazines, some agricultural products |
| 10% | Some food products, restaurant and catering services, some textile and health products |
| 20% | General rate: all other goods and services |
Rates are set per product by Presidential Decision; check the exact rate before invoicing.
Extracting VAT from a VAT-inclusive amount
Net = gross ÷ (1 + rate). Example: TRY 12,000 (incl. 20%) → TRY 10,000 + TRY 2,000 VAT. A common mistake is 12,000 × 20% = 2,400.
VAT withholding
In withholding transactions the buyer pays part of the VAT to the tax office and only the rest to the seller. Pick the withholding rate in the tool to see both sides. Table: VAT withholding rates. Difference from withholding tax: Withholding tax vs VAT withholding. With special consumption tax: VAT and SCT calculator.
Legal basis
VAT Law No. 3065 art. 1, arts. 28–29 (rates and deduction), art. 9 (liability); VAT General Implementation Communiqué.