What is KDV tax in Turkey?

KDV Tax in Turkey is the most common tax in the country; All commercial, industrial and professional transactions that take place on Turkish territory are subject to it.

VAT Tax in Turkey:

The KDV tax in Turkey is an abbreviation of the word Katma Değer Vergisi, which is paid by an individual on goods and services sold and includes all commercial and industrial activities, in addition to goods that entered Turkey through imports.

VAT Calculation in Turkey:

The KDV tax is calculated at varying rates on spending and is by deducting tax percentages from the selling price of the product.

Accordingly, the tax rate rises with the increase in selling prices of products, from the moment they leave the factory until they reach the consumer.

Goods and Services Subject to KDV Tax;

This tax is deducted from the consumer in the end, although the producing companies pay the tax according to their profits from sales. The tax value in Turkey is calculated at varying rates as follows: 1%, 8%, and 18%, according to the necessity of the consumed goods

Explains as follows:

• A tax of 1% is applied to wheat and its derivatives as basic consumables. In addition to real estate that does not exceed 150 square meters.
• As for 8%, it is applied to basic consumer items. Such as legumes, eggs, milk and its derivatives, meat and its derivatives, and other products not related to luxury products.
• The KDV tax is applied at a rate of 18% on non-consumable products and some exceptions are made for other consumable items. Such as: furniture, mobile phones, electrical appliances, some animals, spices, and others.

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