Overview
This is the single most common wrong assumption we see in our inbox. A finance director in London, Amsterdam or New York asks us to "just register the company for Turkish VAT" so they can invoice a Turkish customer, the way they would register for VAT in another EU member state. In most cases that is not possible in Turkey — and in many of those cases it also is not necessary.
This article sets out the general rule, the one genuine exception, and the mechanism that usually solves the problem without any Turkish registration at all.
The short answer
As a general rule, Turkey does not operate a standalone, non-resident VAT registration. A foreign company with no legal presence in Turkey cannot simply obtain a Turkish VAT number and start filing returns. Turkish VAT registration follows tax registration, and tax registration in practice requires a Turkish legal presence — a limited liability company (Limited Şirket), a joint stock company (Anonim Şirket), or a branch of the foreign company.
There is one real exception, and it is narrower than most people expect: electronically supplied services sold to individual consumers in Turkey. That regime is explained below.
If you are selling to a Turkish business, you very often need no Turkish VAT registration at all. The Turkish customer accounts for the VAT. See "The reverse charge" below before you consider setting up an entity.
Why the question keeps coming up
The expectation comes from the European model. Across the EU, a non-established business can typically obtain a VAT number in a member state where it makes taxable supplies, in some cases through a fiscal representative, without incorporating there. Companies that have done this in Germany, Spain or the Netherlands reasonably assume Turkey works the same way.
It does not. Turkey has no general non-resident VAT registration and no general fiscal representative mechanism for VAT. We have had this conversation with in-house tax teams, with Big Four advisers abroad, and on one occasion with a UK VAT specialist who arrived with the fiscal representative assumption already built into the client's plan.
What Turkey actually requires
Three points are worth understanding before you plan around Turkish VAT.
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There is no registration threshold. Unlike the UK or many EU states, Turkey has no turnover threshold below which registration is not required. A person or entity making taxable supplies in Turkey is within the VAT system from the first transaction.
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VAT registration is not a separate act. When a Turkish entity is registered with the tax office, its VAT liability is established as part of that registration. You do not apply for VAT separately — you become a Turkish taxpayer, and VAT follows.
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A liaison office cannot solve this. Liaison offices are permitted to conduct representative and market research activities only. They may not carry out commercial activity, may not invoice, and therefore cannot be used to create a VAT position.
The standard VAT rate in Turkey is 20%, with reduced rates of 10% and 1% applying to defined categories of goods and services. Exports of goods and qualifying international transport are zero-rated.
The exception: electronically supplied services to consumers
Turkey does operate a simplified registration route for non-resident providers of electronically supplied services, introduced to bring foreign digital platforms into the VAT system. Under Article 9 of VAT Law No. 3065 and the VAT General Application Communiqué, a foreign supplier can register through the Revenue Administration's online portal for non-resident electronic service providers and account for Turkish VAT without incorporating in Turkey.
Three conditions must all be met:
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The supplier has no residence, workplace, legal seat or business centre in Turkey.
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The customer is an individual consumer in Turkey who is not registered for Turkish VAT.
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The supply qualifies as an electronic service.
This is a targeted regime, not a general one. It is designed for streaming platforms, app stores, SaaS sold to consumers and similar supplies. It does not cover consulting, engineering, construction, goods, or services rendered to Turkish businesses. If your Turkish customers are companies, this route is not available to you — and, as the next section explains, you probably do not need it.
The reverse charge: why you may need nothing at all
Where a non-resident supplier provides a service that is used in Turkey to a Turkish VAT-registered customer, the VAT is not collected from the foreign supplier. It is accounted for by the Turkish recipient under the reverse charge mechanism in Article 9 of the VAT Law. The Turkish customer declares the VAT on its own return — the so-called No. 2 VAT return — pays it, and in most cases deducts the same amount as input VAT on its No. 1 return.
The practical consequences are worth stating plainly:
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You invoice your Turkish business customer without Turkish VAT.
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Your customer, not you, carries the Turkish VAT compliance obligation.
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You have no Turkish VAT registration, no Turkish VAT returns and no Turkish VAT number to obtain.
A significant share of the "we need a Turkish VAT number" requests we receive are resolved here, in a single conversation, with no entity and no registration. It is worth checking this before you spend anything on a structure.
Two cautions. First, the reverse charge addresses VAT only. It says nothing about corporate income tax, and a foreign company delivering services in Turkey may still create a permanent establishment — a separate question with far larger consequences. Second, withholding tax may apply to the payment under domestic law and the relevant double tax treaty. Neither issue disappears because the VAT question has an easy answer.
Which situation are you in?
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Selling services to Turkish businesses, no presence in Turkey. No Turkish VAT registration. Reverse charge applies; your customer accounts for the VAT. Check permanent establishment and withholding tax separately.
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Selling electronic services to Turkish consumers. Simplified non-resident registration through the Revenue Administration portal. No entity required.
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Selling goods into Turkey. Import VAT is settled at customs by the importer of record. This is a customs question, not a registration question.
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Operating in Turkey — staff, premises, a local delivery capability. A Turkish entity or branch is required, and VAT registration comes with it.
Common mistakes we correct
Assuming a fiscal representative can be appointed. There is no equivalent of the EU fiscal representative for general VAT purposes in Turkey. Plans built on this assumption fail at the first step.
Charging Turkish VAT on an invoice you had no right to charge it on. A foreign supplier that adds 20% to an invoice without a Turkish VAT registration has collected something it cannot remit, and the Turkish customer cannot deduct it. Both sides then have a problem.
Registering an entity purely to solve VAT. A Turkish company brings monthly filings, e-invoicing obligations, social security registration if it employs anyone, statutory books and an annual general assembly. If the reverse charge already answers your question, the entity creates cost and obligation without benefit.
Believing the obligation begins when the money arrives. It does not. The obligation attaches to the taxable transaction, not the collection date.
What to do next
Before you decide anything, three questions settle most of it: who is your Turkish customer — a business or a consumer; what exactly are you supplying — goods, an electronic service, or a professional service; and will anyone be performing work inside Turkey on your behalf. The answers determine whether you need nothing, a simplified registration, or a Turkish entity.
We work with foreign-capital companies on exactly this question, in English, and we will tell you when the answer is that you need nothing from us. If you would like the position on your specific facts, get in touch.
Note. This article describes the general position and is not advice on your specific circumstances. Turkish VAT rules, rates and filing requirements change; verify the current position before acting. Written by Baran Özongan, SMMM (Certified Public Accountant, Türkiye), Founding Partner of Monetics.
