Business in Turkey

Value Added Tax (KDV) is levied on all goods and services supplied as a business activity.

Imports of goods and services are subject to tax at the customs clearing. Goods are considered movable and immovable, property and supplies are almost all business transactions. The KDV is applied on the invoice. The KDV born on purchases is credited against the KDV on sales. The balance is payable to the tax office in the following month.

Certain supplies are exempt from tax, in particular the export of goods and services and the purchase and repair of air, sea and rail means of transport. International transport of goods may be exempted on a reciprocal basis.

The standard rate of KDV is 18%. Other rates are:

- On financial leases and agricultural products, etc…..1%;

- On goods regarded as essential such as food medicine, etc…… 8%;

- On many educational goods and services,     8%.

As an investment incentive, KDV on machinery and equipment imported and purchased locally are exempted.

Exporting companies can recover the KDV borne on goods and services purchased if they prove that they are attributable to goods exported. Goods for re-export can be invoiced to exporters without any KDV charge, but the export of the goods must be documented.

Banking and insurance activities are not subject to KDV. A special transaction tax at the rate of 5% applies to all kinds of bank charges and insurance premiums.

Customs duties

Any entity or individual is required to obtain an import or export license.

Being a member of the European Customs Unity no customs duty exists with respect to the countries of the European union.

Import from other countries is subject to customs duty at various rates.

All procedures are followed and fulfilled by customs experts firms on behalf of the importers or exporters.