Fiscal subject related
Here's a breakdown of the current VAT rates:
- 1% VAT Rate: This rate applies to agricultural products and certain essential goods
- 10% VAT Rate: Recently increased from 8%, this rate now applies to food and beverage services, including restaurant and cafe services
- 20% VAT Rate: The standard VAT rate for most goods and services, including some non-essential food and beverage products
Application in Different Scenarios:
- Essential Food Items: Basic foodstuffs that are considered essential for nutrition are taxed at the lower rate of 1%.
- Food and Beverage Services: When food items are served as part of a service by restaurants, cafes, and similar establishments, they are taxed at the 10% rate.
- Non-Essential Items: Certain food and beverage items that are not deemed essential are subject to the standard rate of 20%.
Businesses need to implement correct VAT rates in different scenarios as there have been cases of improper VAT rates applied in the service industry in particular.
Other news from Turkey
Turkey Expands New e-Declaration System for VAT Returns
Turkey
Author: Ivana Picajkić
Turkey is rolling out a new e-Declaration system for VAT returns, gradually replacing the old platform with open-source software and introducing it in phases across provinces through 2026. Taxpayers in affected regions must submit VAT returns using updated forms via the Digital Tax Office or integrated accounting systems, as the country moves toward a fully modernized nationwide filing framework.... Read more
New education was created: Educational videos for Turkey
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Author: Ivana Picajkić
Fiscalization refers to the integration of hardware and software systems to electronically document and report sales transactions to tax authorities, ensuring compliance with tax regulations. It involves mandatory components like fiscal printers, fiscal memory, and communication modules, along with an e-document system for managing receipts and invoices. Read more
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Already subscriber? LoginTurkey: VAT Rate Control via E-Documents Postponed
Turkey
Author: Ivana Picajkić
The Tax Authority has postponed the planned VAT rate control checks for e-documents (originally set for April 1, 2026) until further notice, allowing more time for system development and delaying related technical updates. The Tax Authority (Revenue Administration) had earlier said that from April 1, 2026, VAT rate checks based on taxpayers’ registration and activity codes would be required... Read more
Turkey Introduces New E-Invoice Validation Controls and Updates UBL-TR
Turkey
Author: Ivana Picajkić
Turkey’s Revenue Administration (GİB) is introducing enhanced validation checks in the e-Invoice system from April 1, 2026, requiring invoice data to align with taxpayer registration and activity codes to improve data accuracy. Read more
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Already subscriber? LoginTurkey Introduces Electronic Fiscal Devices for Taxis
Turkey
Author: Ivana Picajkić
On 17 February 2026, the Turkish Tax Authority mandated that taxi operators install Taxi Financial Devices by 1 September 2026 to record fares in real time, capture trip data, issue electronic receipts and invoices, and support card payments. On February 17, 2026, the Turkish Tax Authority issued a new General Circular under Tax Procedure Law No. 591 requiring taxi operators to install electronic... Read more
Turkey: 2026 Invoice and Cash Register Receipt Limits
Turkey
Author: Ivana Picajkić
Turkey has updated its 2026 invoice and cash register receipt limits under the Tax Procedure Law, setting the general threshold at 12,000 TL and a higher 36,000 TL limit for the jewellery sector, above which issuing an invoice is mandatory. The increase reflects inflation and the 2025 revaluation rate, with updates applied automatically to fiscal devices to support transparency and proper tax repo... Read more
2026 Contactless Payment Limit in Turkey
Turkey
Author: Ivana Picajkić
Turkey has increased the PIN-free contactless payment limit from 1,500 TL to 2,500 TL as of 15 January 2026, following guidance from the Banking Regulation and Supervision Agency (BDDK). The change reflects inflation and growing digital payment usage, while transactions above the limit still require PIN or biometric verification for security. Turkey has increased the limit for contactless payments... Read more