Türkiye VAT Rates 2026: 20%, 10%, 1% and Withholding

In Türkiye the standard VAT rate in 2026 is 20%, with reduced rates of 10% and 1%. You can add VAT to a net amount, strip it out of a gross price, or work back from the VAT figure. The tool does not choose the rate for you; on withheld (tevkifat) invoices the buyer pays part of the VAT.

What are the VAT rates in Türkiye in 2026?

The standard rate is 20%, and the reduced rates are 10% and 1%. The rates come from the VAT Law and presidential decisions.

The tool does not say which goods or services fall under which rate; the type of work on the invoice does. You can also enter older rates in the “other rate” field and calculate with them.

The seller calculates the VAT and shows it on the invoice, and the buyer pays the price. What is VAT has the short answer.

How is VAT calculated?

When you add VAT, the tax is the net amount multiplied by the rate: VAT = base × rate, and the gross amount = base + VAT.

When you separate VAT, you divide the gross amount by (1 + rate) to find the net amount; the VAT is what is left when you subtract the net from the gross. If all you have is the VAT figure, you divide it by the rate to find the base.

We round amounts to the kuruş. When an invoice is rounded line by line, the total can differ by a few kuruş, and a base found from the VAT can be a few kuruş off the invoice figure. The step-by-step explanation is in the how to calculate VAT in Türkiye guide.

How much VAT is there on 10,000 TRY?

For example, on a purchase of 10,000 TRY net, VAT at 20% is 2,000 TRY and the gross amount is 12,000 TRY. In the other direction, dividing a gross 12,000 TRY by (1 + rate) gives the same 10,000 TRY base and 2,000 TRY of VAT. At the reduced rates, the same 10,000 TRY carries 1,000 TRY of VAT at 10% and 100 TRY at 1%.

These figures are an example. VAT-inclusive vs VAT-exclusive prices helps you choose which direction to calculate in.

Who pays how much on an invoice with withholding?

Withholding (tevkifat) means part of the VAT is not paid to the seller: the buyer pays that part to the tax office. Partial withholding is applied by buyers who are VAT taxpayers and by the buyers listed in the communiqué (public administrations, banks, companies whose shares are traded on the stock exchange, and others); for some types of work only the listed buyers withhold.

Partial withholding applies to the whole amount when the VAT-inclusive price of the transaction exceeds the invoice-issuance limit for the year (Tax Procedure Law, Article 232). Below that limit, no withholding is made.

For example, on cleaning services of 20,000 TRY net the VAT is 4,000 TRY. With 9/10 withholding the buyer pays 3,600 TRY to the tax office and the seller collects 400 TRY of VAT, so the buyer pays the seller 20,400 TRY. At 5/10 on the same amount the shares are 2,000 TRY each, and the amount paid to the seller rises to 22,000 TRY.

VAT withholding rates by type of work

Enter the amount and rate on your invoice and see the VAT and the withholding share with your own figures in the VAT calculator.