VAT and invoicing in Türkiye (2026): KDV, e-Fatura and e-Arşiv

Türkiye (Turkey) has one of the most digital invoicing systems in the world: most invoices are already electronic documents registered with the Revenue Administration, and from 2026 paper invoices have all but disappeared. This guide covers what a small business needs: rates, who is taxable, returns, what an invoice must show, the e-Fatura and e-Arşiv rules, and a worked example in Turkish lira. Rules are as of October 2026.

KDV at a glance: rates and the tax authority

The tax is Katma Değer Vergisi (KDV), governed by the VAT Law No. 3065 and administered by the Revenue Administration (Gelir İdaresi Başkanlığı, GİB), part of the Ministry of Treasury and Finance. The President sets the rates by decree; the general rate rose from 18% to 20%, and the 8% rate to 10%, on 10 July 2023.

Banks and insurance companies are generally exempt from KDV and pay the banking and insurance transactions tax (BITT) instead, generally at 5%. Imports are taxed at the same rates as domestic supplies.

Who is taxable

• No threshold: every supply of goods and services made in a commercial, industrial, agricultural or professional activity is subject to KDV. If you run a business, you charge KDV from the start.
• Foreign suppliers: when a Turkish business buys services from a foreign supplier, it calculates and pays the KDV itself under the reverse charge and deducts it as input VAT in the same month.
• Tax IDs: companies use a 10-digit tax number (vergi kimlik numarası, VKN); individuals use their 11-digit Turkish identity number (T.C. kimlik numarası).

KDV returns and payment

So the KDV for August is filed and paid by 28 September.

What a Turkish invoice must show

Article 230 of the Tax Procedure Law No. 213 (Vergi Usul Kanunu, VUK) sets the minimum content of an invoice (fatura):

1. 1Date of issue, and series and sequence number
2. 2Your name or trade name, business address, tax office and tax number
3. 3The customer's name or trade name and address, and their tax office and number where they have one
4. 4Type, quantity, price and amount of the goods or services
5. 5For goods, the delivery date and the delivery note (irsaliye) number

An e-Fatura or e-Arşiv invoice also shows the tax type, rate and amount, and carries a QR code. Its number has 16 characters: a 3-character prefix, the 4-digit year and a 9-digit sequence that restarts at 1 every year.

Other rules:

• Deadline: the invoice must be issued within 7 days of the delivery or service. An invoice issued later is treated as never issued.
• Invoice threshold for 2026: for a sale of more than TRY 12,000, an invoice must be issued. Below it, a retail receipt or cash register receipt can be used instead.
• Retailers: traders selling to final consumers use a fiscal cash register (ÖKC), whose receipt replaces the invoice.
• Returns and cancellations: when goods are returned or a deal is cancelled, both seller and buyer adjust the KDV in the period of the change. A buyer can object to an e-Fatura within 8 days; under the Commercial Code, a buyer who does not object within 8 days is deemed to accept it.
• Foreign currency: invoices may be issued in a foreign currency if the Turkish lira equivalent is shown; for customers abroad this is not required.
• Record keeping: 5 years under the Tax Procedure Law, counted from the start of the following year, and 10 years for commercial books and supporting documents under the Turkish Commercial Code.
• Penalties: for each invoice not issued, issued on paper when it should be electronic, or deemed never issued, the fine is 10% of the amount, with a minimum of TRY 17,000 for the first finding in a year in 2026, rising for repeat findings.

e-Fatura, e-Arşiv and the other e-documents

All of these are governed by the Revenue Administration's VUK General Communiqué No. 509 and its amendments.

In practice: if you are an e-Fatura user, an invoice to another registered user goes as an e-Fatura through the Revenue Administration's system, and an invoice to anyone else as an e-Arşiv invoice. If you are not an e-Fatura user, all your invoices are e-Arşiv invoices. Businesses without their own integration can use the Revenue Administration's e-Arşiv portal.

Issuing e-Fatura and e-Arşiv invoices requires the Revenue Administration's portal or a licensed integrator. Clientlly is not a licensed e-Fatura or e-Arşiv provider, so you need one of those for that part.

Worked example in Turkish lira

A small publisher and consultancy in İzmir files its KDV return monthly. In August it invoices:

It buys office equipment for TRY 40,000 plus TRY 8,000 KDV and software for TRY 25,000 plus TRY 5,000 KDV. Input VAT is TRY 13,000.

KDV payable = TRY 23,000 − TRY 13,000 = TRY 10,000, filed and paid by 28 September 2026. To find the KDV inside a gross price at 20%, multiply by 20 and divide by 120: TRY 1,200 × 20 ÷ 120 = TRY 200.

Late payment: default interest between businesses

• Payment terms: under Article 1530 of the Turkish Commercial Code, for the supply of goods and services between businesses, the debtor is in default without a reminder once the agreed date passes. If no date is agreed, payment is due 30 days after the invoice is received. Agreed terms may not exceed 60 days, except by explicit agreement that does not seriously harm the creditor; where the creditor is a small business or the debtor is a large company, 60 days is a firm limit.
• Default interest: the Central Bank announces the rate every January. For 2026 it is 43% a year, and the creditor can also claim a minimum of TRY 2,020 for collection costs.
• Clauses excluding default interest are void.
• Late tax payments carry a surcharge (gecikme zammı) of 3.7% a month.

Common mistakes

1. 1Issuing a paper invoice in 2026. If you are not an e-Fatura user, your invoices now go out as e-Arşiv invoices, whatever the amount (simplified-method and single-entry taxpayers have until the end of 2026 below TRY 3,000).
2. 2Missing the e-Fatura switch. Check your gross sales each year against TRY 3 million, or TRY 500,000 if you sell online.
3. 3Invoicing more than 7 days after delivery, so the invoice counts as never issued and attracts a penalty.
4. 4Sending an e-Arşiv invoice to an e-Fatura user, or the other way round. Check whether your customer is registered.
5. 5Applying 20% to everything. Foodstuffs, textiles and books are mostly at 10%; check the lists.
6. 6Not objecting to a wrong supplier e-Fatura within 8 days, after which it is deemed accepted.

How Clientlly helps

Clientlly takes care of the invoicing and bookkeeping work behind your KDV return. Invoices are numbered sequentially per series and carry Türkiye's KDV rates; credit notes are linked to the original invoice; and the PDF is produced in your client's language, with a card payment link. You see when an invoice was opened, automatic reminders go out 3, 14 and 30 days after the due date, and recurring invoices and multiple currencies are supported. Scanned receipts have their KDV read automatically, sales and purchase tax books are kept per rate, including exports and reverse charge, and tax reports with Excel and PDF exports are ready for you and your accountant. Import clients, suppliers, products and opening balances from Excel or CSV, and work from the mobile app. Clientlly is not a licensed e-Fatura or e-Arşiv provider, so issue your legal e-invoices through the Revenue Administration's portal or a licensed integrator. See invoicing, accounting and how to get paid faster.