VAT and withholding in Turkey: a small-business primer
A plain, current summary of what you need to know before visiting your accountant.
VAT and withholding are the two numbers every business in Turkey deals with every month. Here are the essentials.
VAT is calculated at 1%, 10%, or 20% depending on the service or product. You collect it from the client and remit it to the state.
Withholding tax is an amount deducted by the client — especially on service invoices — and paid directly to the state. A 20% withholding line on professional-service invoices is common.
QuickBill computes VAT per line automatically and shows the subtotal, tax and grand total separately. Invoicing should be geometry, not arithmetic.
One caveat: every industry has exceptions. Rent, consulting, and software services can have different rates. Even with QuickBill in your stack, a once-a-year checkup with a local accountant is inevitable.