Trusted Turkey VAT Refund Services by Metropol CPA

Doing business in Turkey can be rewarding, but like in many countries, managing taxes effectively is essential to protect your profits. One area where companies often leave money on the table is VAT (Value Added Tax). If you are a resident or non-resident company operating in Turkey, you may be eligible for a Turkey VAT refund on certain expenses.

Understanding who qualifies, what expenses are covered, and how to navigate the process can be complicated. That’s where our professional VAT refund services in Turkey come in — ensuring you recover every eligible lira while staying fully compliant with Turkish tax regulations. Read more to know how we will help you.

What is a Turkey VAT Refund?

VAT (KDV in Turkish – Katma Değer Vergisi) is a consumption-based tax applied to most goods and services within Turkey. It is collected at each stage of the supply chain, from production to the final sale to the consumer. The standard VAT rate in Turkey is currently 20%, while reduced rates of 10% and 1% apply to certain goods and services, such as specific food products, healthcare services, and basic necessities.

For businesses, VAT is generally paid upfront when purchasing goods or services and later offset against VAT charged on sales. However, in many cases — especially for companies engaged in export-related activities or for foreign businesses operating temporarily in Turkey — the amount of VAT paid on purchases can exceed the amount collected from customers. This creates an opportunity to claim a Turkey VAT refund, recovering the excess tax paid.

A Turkey VAT refund allows eligible businesses to reclaim VAT incurred on certain business-related expenses. These may include costs associated with accommodation, transportation, event participation, professional services, and the purchase of goods for export. The refund process is especially important for foreign companies without a permanent establishment in Turkey, as they are not registered for VAT in the country but may still incur significant VAT charges while carrying out business activities.

By reclaiming this tax, companies can achieve substantial cost savings, which can directly improve cash flow and profitability. This is particularly relevant for organizations involved in cross-border trade, international exhibitions or trade fairs, or those that frequently incur travel and operational expenses in Turkey. For many, a successful VAT refund can make the difference between a marginal and a highly profitable venture.

Who Can Claim a Turkey VAT Refund?

Eligibility for a Turkey VAT refund depends on both the legal status of your business and the nature of the expenses you incur. The Turkish tax system clearly defines who can apply, and understanding these categories is the first step to maximizing your potential refund.

A Resident Company in Turkey

Resident companies are businesses that are legally registered and operating within Turkey. For these companies, a VAT refund is not just a benefit — it’s an important part of maintaining healthy cash flow and ensuring that overpaid taxes are returned promptly. These companies are typically VAT-registered and file regular VAT returns with the Turkish Revenue Administration.

A resident company may be eligible for a VAT refund if:

• They have overpaid VAT during a tax period — for example, when the VAT paid on purchases (input VAT) exceeds the VAT collected from sales (output VAT).

• They incur deductible input VAT on purchases related to taxable business activities, such as raw materials, equipment, services, or operational costs.

• They are engaged in zero-rated activities, such as exporting goods or providing certain international transportation services, which allow them to recover all related VAT on inputs.

A Non-Resident (Foreign) Company

Non-resident companies are businesses that operate outside of Turkey and do not have a permanent establishment (PE) in the country. They are not registered for Turkish VAT in the conventional sense, but they may still incur VAT when purchasing goods or services during their activities in Turkey. Foreign businesses may be eligible for a VAT refund if they are engaged in specific taxable activities, such as:

• Participating in Trade Shows or Exhibitions

Many international businesses attend industry events, exhibitions, and trade fairs in Turkey to promote their products or services.

The costs for stand rentals, booth design, promotional materials, and related travel expenses often include VAT. A VAT refund allows foreign exhibitors to recover this tax, reducing the overall cost of participating in Turkish events.

• Purchasing Goods or Services in Turkey for Export

Some foreign companies source products, raw materials, or services from Turkish suppliers for export back to their home country or other international markets.

In these cases, the VAT paid on these purchases can often be reclaimed, especially if the goods are exported outside of Turkey in compliance with customs and VAT regulations.

• Incurring Travel or Operational Expenses for Business Activities

Foreign companies frequently incur VAT when their employees travel to Turkey for meetings, negotiations, installations, or training sessions.

This can include hotel stays, car rentals, domestic flights, catering, or professional services purchased locally. A VAT refund ensures these costs are reduced, making international operations more financially efficient.

Challenges of the VAT Refund Process

While the benefits of a Turkey VAT refund can be substantial, the application process is often far from straightforward. Businesses — especially foreign companies unfamiliar with the Turkish tax system — may face multiple hurdles that can slow down or even prevent a successful claim. Understanding these challenges in advance is crucial to avoiding costly mistakes. Here are some of the challenges:

Strict Documentation Requirements

The Turkish Revenue Administration requires original, verifiable documents to process VAT refund claims. Even minor errors, such as incorrect invoice formatting or missing tax identification numbers, can lead to requests for clarification or outright rejections. Maintaining meticulous records is not just recommended — it’s mandatory. This includes:

• Original invoices issued in compliance with Turkish VAT rules (showing the seller’s tax identification number, VAT rate, and VAT amount separately).

• Proof of payment, such as bank transfer records or credit card slips.

• Supporting contracts, agreements, or event participation confirmations.

• Export documentation for goods shipped outside Turkey.

Language Barriers

For many foreign businesses, language is a significant obstacle. All official VAT refund applications, supporting documents, and correspondence with the Turkish tax authorities must typically be in Turkish.

While certain documents like invoices can remain in their original language, they often require certified translations. Misinterpretation or mistranslation of financial terms can result in delays, misunderstandings, or rejected claims.

Lengthy Processing Times

The VAT refund process in Turkey can be time-consuming, with approval times ranging from several months to over a year in complex cases. Without proactive follow-up, claims can remain stagnant for months. Businesses that fail to monitor their applications closely risk unnecessary delays in receiving their refunds. Delays may occur due to:

• High volume of refund applications being processed by the authorities.

• Requests for additional documentation or clarifications.

• Internal audits or verifications conducted by the tax office.

Risk of Rejection

Perhaps the most frustrating challenge is the risk of claim rejection. Re-submitting a rejected claim often requires starting the process over, causing further delays and administrative burdens. Common reasons include:

• Non-compliance with Turkish VAT laws and regulations.

• Submitting claims for non-refundable expenses.

• Missing or incomplete supporting documents.

• Errors in VAT calculation or reporting.

Our VAT Refund Services in Turkey

At Metropol CPA, we provide end-to-end Turkey VAT refund services designed to meet the needs of businesses of all sizes — from small enterprises to multinational corporations. Our goal is simple: to help you recover the VAT you are entitled to while making the process as smooth, compliant, and stress-free as possible. Here’s a closer look at how we work with you:

1. VAT Refund Eligibility Analysis

Before beginning the application process, we conduct a thorough review of your business activities, transactions, and expenses to determine your eligibility for a Turkey VAT refund. Our careful analysis ensures that you only apply for legitimate claims, which saves you valuable time and reduces the risk of rejections caused by ineligible expenses.

This includes examining invoices, receipts, and supporting documents for compliance with Turkish VAT requirements, identifying which expenses qualify for a refund based on current legislation, and assessing whether your company — whether resident or non-resident — meets the necessary conditions for filing a claim.

2. VAT Refund Claim Preparation

Preparing a VAT refund claim in Turkey requires precision and full adherence to local tax regulations. By taking over this time-consuming process, we allow you to focus on running your business while we handle the administrative workload. Our team of experienced VAT specialists handles the entire preparation process, including organizing and verifying all required documentation, preparing your claim in the correct format recognized by the Turkish Revenue Administration, managing translations and ensuring every document meets the language requirements, and double-checking all figures to prevent errors that could cause delays or denials.

3. VAT Refund Recovery and Follow-Up

Submitting a VAT refund claim is only the beginning. Without regular follow-up, claims can stall for months. Our proactive follow-up approach often results in faster approvals and quicker payments to your business account. That’s why we actively manage the progress of your application from start to finish by tracking the status of your claim through the Turkish tax system, responding quickly to any requests for clarification or additional documentation, maintaining direct communication with tax officials to speed up processing, and providing you with regular progress updates so you’re never left in the dark.

4. VAT Compliance Consulting

VAT regulations in Turkey can be complex and are subject to frequent updates. With our guidance, your business remains compliant, confident, and in the best position to claim future VAT refunds with ease. We offer specialized VAT compliance consulting to help you stay fully aligned with current Turkish VAT laws, avoid common mistakes that lead to fines or penalties, implement best practices for record-keeping and invoicing, and plan future business activities in a way that maximizes VAT recovery potential.

Why Choose Us for Your Turkey VAT Refund?

Over the years, Metropol CPA has earned the trust of both local and international companies seeking a Turkey VAT refund. Our team of VAT specialists brings extensive experience and deep knowledge of Turkish tax laws, regulations, and refund procedures. We have a proven track record of securing successful refunds for businesses of all sizes, ensuring each claim is handled with the highest level of professionalism and accuracy.

We prioritize efficiency by using modern technology, advanced tracking systems, and streamlined processes to prepare and submit VAT refund claims quickly and accurately. Every application undergoes a detailed compliance check against Turkish VAT rules to minimize the risk of rejection, requests for additional documents, or unnecessary delays. This approach allows our clients to receive their refunds faster while maintaining full compliance with local regulations.

Our services are also designed to be cost-effective, giving you maximum return on investment. Whether you are a Turkish-based business or a foreign company operating temporarily in the country, we ensure that no eligible refund is left unclaimed. From eligibility assessment and claim preparation to ongoing follow-up with the tax authorities, we handle the entire process from start to finish.

Contact us now and get your free consultation.