VAT refund in Turkey: A complete guide to tax-free shopping in Türkiye for tourists

Are you tired of the damp and cold weather in London? Plan a trip to Turkey and get ready to be embraced by the kaleidoscope of fun! Often called the bridge between East and West, Turkey is a one-stop destination where you can expect an unforgettable experience with a mix of history, culture, and stunning scenery.

While in Turkey, remember to treat yourself to a shopping spree. No visit to Turkey is completed without a shopping experience. Whether it's in your favourite local open-air market or fancy expensive shopping malls, the thrill of shopping in Turkey is something that no one can resist. You will find anything here, from exquisite carpets to stylish clothes and jewellery!

However, you will also notice that you will need to pay a VAT of up to 20%. That's a lot of extra money you might have yet to plan for! Don't worry. You can claim a portion of this amount back! This guide will provide an overview of tax-free shopping in Turkey to save money while enjoying this beautiful country's sights and sounds.

And if you are looking for one more smart way to save even more, read this article and find out about Wise!

How much is VAT in Turkey?

Before anything else, let’s cover the basics first! In Turkey, the Value Added Tax (VAT) is also known as Katma Değer Vergisi” (KDV). The acronym ‘KDV’ is often used instead of ‘VAT,’ but they essentially refer to the same type of tax.

When shopping in Turkey in July of 2024, you will mostly see the standard rate of 20%², which applies to most goods and services here. However, there are also two reduced rates that apply to specific categories.

You can refer to the table below for a quick check¹:

Tier	Rate	Applicable goods
Standard Rate	20%	Most of the goods and services.
Reduced Rate	10%	Basic food stuffs, Clothing products; Some furniture; Health care services; Educational services; Cinema, theatre, opera,, ballet, museum; and Accommodation services
Second reduced Rate	1%	Supply of some agricultural products; Certified seeds; Bread; Certain supply of houses; funeral services; and Leasing of machinery

How much VAT is refunded in Turkey?

In general, you won't get the total amount back. And you cannot really calculate exactly how much VAT is refunded in Turkey by yourself. This is because you will likely need to use the intermediary refund agent to get your VAT refund in Turkey. Therefore, you will have to pay an administration fee to your agent. The fee can vary based on which agent you use and may be deducted directly from the refund amount. If you want to receive your VAT refund in Turkey by your credit card, extra foreign exchange fees will also be charged.

So, it is recommended that you find your preferred agent first. Then, you can use their Turkey VAT refund calculator to estimate roughly how much you will get back.

Depending on the amount, you will typically get a refund of between 10.5% and 12.5% of the item's total price.

Who is eligible for tax free shopping in Turkey?

There are certain eligibilities for tax-free shopping in Turkey you need to meet, such as:

• You are not a non-resident of Turkey;
• You have a valid passport;
• You will take the unused products in your personal luggage within three months of your purchases; and
• Your purchase is at least 1000 TRY, excluding the VAT exclusive.

How to get VAT refund in Turkey?

If you have checked off all the eligibility for tax-free shopping in Turkey, you are now ready to get a VAT refund in Turkey. You can follow these simple steps to get your VAT refunded in Turkey:

Receive a tax exemption form

While shopping at the store, ensure the VAT Turkey refund scheme covers this store. Not all stores in Turkey are in this scheme. You can look for a ‘Tax-free’ sign or ask the cashier for this information. You should also ask for a Tax Refund Form before paying for your goods. You might also be requested to show your passport to check your eligibility, so bring the document with you to shop. After getting the form, fill in and sign this VAT refund form. Before leaving the store, you should have the form and invoice with you.

Have the forms approved by Customs

Depending on where you store your goods, you will go to different places to validate your form. But whether you put your goods in your checked luggage or carry-on luggage, you will need to be able to show physically:

• The goods you want to claim back VAT refund in Turkey;
• The tax refund forms,
• Invoices;
• Boarding passes and your passports.

If your goods are in your checked luggage, make sure to apply for your VAT refund in Turkey before you go through Passport and Border Control. You should check in and receive your boarding pass first. Inform the people at your airline counter that you have goods to declare for a VAT refund, and they will give you a luggage label. After collecting everything you need, head to the Customs office to have your goods validated. If you are doing a VAT refund in Istanbul airport, you can do these procedures at²:

• Check-in counters G3-4-5 for Turkish Airlines' passengers; and
• Check-in counters K 25-26-27 for other airlines.

If your goods are in your carry-on luggage, make sure to apply for your VAT refund in Turkey after you go through Passport and Border Control. If you are doing a VAT refund in Istanbul airport, the Customs office is located in the right-hand corner after passport control.

This is an important step. Without confirmation from the Customs officers, you will not be refunded VAT!

Obtain a VAT refund

After getting the validation from Customs, you can visit the nearest intermediary refund agent to receive your refund using your preferred method.

If you want to receive your VAT refund at Istanbul airport, head to the Global Exchange points located to the left and right behind the information desk to claim your money.

That’s it! Now you already have in your hand this simple step-by-step guide on how to claim your VAT refund in Turkey! Pull up this article when you are on your way to discover the magical land of Turkey: you can save for your next escape. Moreover, on top of that, there is one more good news: you can save even more than this with Wise!

Tourists in Turkey can get a VAT refund using a credit card. However, if the card's currency (e.g., GBP) is different from the local currency (e.g., TRY), it may be converted automatically. Usually, your card provider determines the conversion rate, often with a hidden markup.

To reduce costs on currency conversion, consider getting your refund with a Wise debit card, which only charges a small fee and converts at mid-market rates without markups if a conversion occurs. And it allows you to hold 40+ currencies, including TRY. Order your Wise card for a one-time fee of 7 GBP today!

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Please be aware that tax regulations and procedures may change over time. Always verify the information with official sources for the most accurate and up-to-date guidance.

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Sources used for this article:

1. Revenue Administration: Turkish Taxation System
2. Presidency of the Republic of Turkiye: Investment guide
3. Istanbul Airport: Tax Refunds

Sources last checked on 29-Jul-2024.