Turkish VAT Withholding Calculator
Pick the transaction, the amount before VAT and the buyer. See the VAT the buyer withholds, the VAT the seller collects and what the seller is paid, with the threshold and buyer rules applied.
- Amount before VAT100,000.00 ₺
- VAT rate20%
- VAT charged20,000.00 ₺
- Withholding share9/10
- VAT withheld (paid by the buyer)18,000.00 ₺
- VAT the seller collects2,000.00 ₺
- Invoice total with VAT120,000.00 ₺
- Amount paid to the seller102,000.00 ₺
VAT withholding rates: GİB
VAT rates: GİB / Cumhurbaşkanlığı (CB kararı)
How it is calculated
Partial VAT withholding means the buyer, not the seller, reports and pays part of the VAT on certain services and goods (VAT Law Article 9). The KDV General Implementation Communiqué, section I/C-2.1.3, lists the transactions and shares. On some, only designated buyers (public bodies, banks, listed companies and the like) withhold; on others, such as cleaning, staffing, transport and advertising, every VAT-registered buyer does.
KDV = Bedel × KDV oranı; Tevkif edilen KDV = KDV × (pay ÷ 10); Satıcıya ödenen = Bedel + KDV − Tevkif edilen KDVIf the amount with VAT does not exceed ₺12,000, nothing is withheld; above it, withholding applies to the whole amount. The threshold is the invoicing limit of Tax Procedure Law Article 232, updated every January.Example
A company buying ₺100,000 of cleaning plus 20% VAT owes ₺20,000 of VAT. It withholds 9/10 (₺18,000) and reports it itself, pays the seller ₺102,000, and the seller reports only ₺2,000 of VAT.
Frequently asked questions
What is the withholding threshold?
₺12,000 including VAT. It follows the invoicing limit of Tax Procedure Law Article 232 and rises every year. Splitting one job across several invoices does not help: the total of the same job counts.
Who pays the withheld VAT, and how?
The buyer reports and pays it on VAT return no. 2 and, if VAT-registered, deducts the same amount on return no. 1. The seller reports only the part it collected.
Who are the designated buyers?
Those listed in section I/C-2.1.3.1/b of the Communiqué: public administrations and bodies, revolving-fund units, professional chambers, banks, insurers and pension companies, unions, foundation universities, mobile operators, state enterprises, organised industrial zones, exchanges, companies listed on Borsa İstanbul and development agencies, among others.
When does withholding apply to construction?
At 4/10 on all construction work for designated buyers; for other VAT-registered buyers only when the contract is worth ₺5,000,000 or more with VAT.
Do individuals withhold?
No. People and bodies that are not VAT-registered (other than designated buyers) do not withhold; for security services sold to a building management with no VAT number, the seller reports all the VAT.