In addition to the standard Turkey VAT rate, there are also two reduced Turkey VAT rates of 10% and 1% (following the Turkey VAT rate increase in July 2023). The expenses that are typically claimable as part of a Turkey VAT refund is generally subject to VAT at the standard Turkey VAT rate except for Food, drink and Restaurant services which are subject to VAT at the reduced Turkey VAT rate of 10%.

A business would be able to claim a Turkey VAT refund if the entity is not registered for VAT in Turkey (and as such does not have a Turkey VAT number) and if it does not make any taxable supplies that are subject to VAT in Turkey. Additionally, the business would need to be established in a country that allows reciprocal treatment of Turkish businesses in relation to VAT refunds. It is also very important to note that only VAT on expenses relating to the participation of the business in a fair or exhibition in Turkey, or for fuel, vehicle spare parts, vehicle maintenance and repairs and highway tolls are claimable in a Turkey VAT refund.

If Turkey VAT has been charged incorrectly on an invoice, the invoice would generally not be claimable as part of a Turkey VAT refund. In this instance, the entity would need to reach out to the supplier to have the incorrectly charged Turkey VAT refunded. This is something that VAT IT would be able to assist with.

There is no fixed deadline for a Turkey VAT refund as submissions can be made monthly. It is however important to note that VAT on invoices are only eligible for a Turkey VAT refund up to two years after the calendar year in which the VAT in Turkey was incurred.

A Turkey VAT refund needs to be submitted in physical hard-copy to the Turkey VAT Authority. It is important to note which Tax Office the submission should be sent to. For Turkey VAT refunds relating to the participation in fairs or exhibitions, the submission should be sent to the Tax Office closest to where the fair or exhibition took place.