What is VAT withholding and who is responsible?
Partial VAT withholding splits declaration responsibilities between buyer and seller. It does not reduce the taxable amount. For rental income withholding, use the income withholding calculator.
How is VAT withholding calculated?
Calculated VAT, withheld VAT and collection
VAT = taxable amount × VAT rate. Withholding = VAT × withholding fraction. Collection = taxable amount + VAT − withholding. For an eligible TRY 20,000 invoice at 10% VAT and 5/10 withholding, VAT is TRY 2,000, withholding TRY 1,000 and collection TRY 21,000.
5/10 withholding on restaurant and catering invoices
Eligible catering and event services supplied to designated buyers use a 5/10 fraction. Check buyer status, service scope and the invoice threshold together.
Who are designated buyers?
These are the buyers listed in section I/C-2.1.3.1/b of the Turkish VAT General Application Communiqué. Examples include public bodies, banks and state economic enterprises. A company invoice alone does not establish this status.
Are corporate meals eaten at a restaurant subject to withholding?
On-premises meals invoiced to a designated buyer can fall within scope. The invoice threshold must also be exceeded.
Withholding threshold: when does it not apply?
In 2026, partial withholding is not calculated if the VAT-inclusive total is TRY 12,000 or less. Above that threshold, the fraction applies to all calculated VAT, not only the excess.
VAT withholding versus income withholding
This tool splits invoice VAT between buyer and seller. Rental income withholding is a deduction from gross rent. Use the rental withholding calculator for rent.
The seller view shows collection; the buyer view shows payment to the seller and VAT declared separately. Change the eligibility selection for transactions outside scope.