What is KDV?
Last Updated: 2023-09-11
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What is KDV?
Added tax is one of the most popular taxes in Turkey, and its rates vary according to the type of investment. The legal team at Mersat Real Estate has prepared for you a summary of the details of this tax in Turkey .
You will read in this article:
- The application of the added tax
- List of exemptions from VAT
What is the added tax?
It is an acronym for KATMA DEĞİR VERGİSİ, and surely you have heard of it, whether when buying a property in Turkey or when purchasing any product from any commercial center, and the value must appear in any invoice that has been deducted, even when shipping and exporting goods from Turkey, purchase receipts must be attached, including pay this value
Application of the tax value:
Value Added Tax in Turkey is applied to goods and services of a commercial, industrial, agricultural, handicraft nature, goods and services imported from outside Turkey *imports* and deliveries of goods and services
The value added tax in Turkey has three rates 1% - 10% - 20% and is classified as follows:
The value added tax in Turkey has three rates 1% - 10% - 20% and is classified as follows:
1%
A value-added tax of 1% is imposed on wheat flour and its derivatives, which are basic consumer items, as well as on residential units whose area does not exceed 150 square meters.
10%
It is imposed on basic consumer items that are not included in luxury consumption products or supplements, such as meat, milk, eggs and their derivatives, legumes, honey, jam, molasses, sweets, brie, some animals and some other services and products.
It is imposed on basic consumer items that are not included in luxury consumption products or supplements, such as meat, milk, eggs and their derivatives, legumes, honey, jam, molasses, sweets, brie, some animals and some other services and products.
20%
Imposed on items that are not classified as basic consumable items; Telecommunications, furniture, electrical appliances, some animals, spices, and other products and services, in addition to commercial or residential properties that exceed 150 square meters.
Imposed on items that are not classified as basic consumable items; Telecommunications, furniture, electrical appliances, some animals, spices, and other products and services, in addition to commercial or residential properties that exceed 150 square meters.
Value-added taxes in Turkey are exempted on several types, including:
• Goods and services exported from Turkey "Exports"
• Roaming services (mobile phone) within Turkey that are provided to non-resident customers coming from outside Turkey, but on condition of reciprocity by the resident's country, in accordance with international roaming agreements.
• Manufacturers within free zones – FREE ZONE
• Oil drilling activities
• Port and airport services provided to ships and aircraft
• Imported machinery and equipment within the scope of the Investment Certificate
• Transit
• Deliveries of goods and services carried out by diplomats and representatives of foreign consulates, provided there is reciprocity, as well as for international organizations subject to tax exemption and their employees.
• Insurance and banking transactions.
• Roaming services (mobile phone) within Turkey that are provided to non-resident customers coming from outside Turkey, but on condition of reciprocity by the resident's country, in accordance with international roaming agreements.
• Manufacturers within free zones – FREE ZONE
• Oil drilling activities
• Port and airport services provided to ships and aircraft
• Imported machinery and equipment within the scope of the Investment Certificate
• Transit
• Deliveries of goods and services carried out by diplomats and representatives of foreign consulates, provided there is reciprocity, as well as for international organizations subject to tax exemption and their employees.
• Insurance and banking transactions.
The KDV is calculated by deducting the tax percentage from the selling price of the product. We note that the value of the tax increases the higher the selling price of the product.
For more information about the added tax, visit the official website of the Turkish Taxation Directorate: https://www.ivdb.gov.tr/kdv-ile-ilgili-yararli-bilgiler
About the added tax in real estate, there are many details, specifically about the tax exemption for new investors, to take advantage of these exemptions, contact the team of Mersat Real Estate to see the legal details of your investments in Turkey.
For more information about the added tax, visit the official website of the Turkish Taxation Directorate: https://www.ivdb.gov.tr/kdv-ile-ilgili-yararli-bilgiler
About the added tax in real estate, there are many details, specifically about the tax exemption for new investors, to take advantage of these exemptions, contact the team of Mersat Real Estate to see the legal details of your investments in Turkey.
Edited by Mersat Real Estate Team©
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