Why exporters have VAT to recover
An exporter pays 20% VAT (or a reduced rate) on raw materials, services and overheads, but charges no VAT on exports. Without a refund, that VAT would be a cost. The refund mechanism returns the input VAT that relates to exempt export sales.
Who can claim
Exporters of goods, with a customs export declaration.
Exporters of services where the service is used abroad and the customer is abroad.
Suppliers selling to exporters under the deferred export regime (ihraç kayıtlı teslim).
Companies making other exempt supplies, such as deliveries under an investment incentive certificate.
Step by step
Declare the exempt sales on the monthly VAT return, with the refundable VAT calculated.
Prepare the refund file: list of purchase invoices, list of sales invoices, customs declarations or service export documents, and proof of payment where required.
Choose the method: offset against other tax debts (for example withholding or social security debts, or the company's own future taxes) or a cash refund.
Add the supporting report if the claim is above the limits for standard documents: a YMM report, a tax inspection report, or a bank letter of guarantee to receive the refund earlier.
Respond to tax office queries, including checks on suppliers flagged in the risk system.
Receive the refund or offset once the review is completed.
Offset or cash?
| Offset | Cash refund | |
|---|---|---|
| Speed | Usually faster | Slower; often needs a report or guarantee |
| Use | Pays other tax and social security debts | Money returned to the bank account |
| Best for | Companies with regular tax payments | Exporters with little other tax to pay |
Common problems
Purchase invoices from suppliers flagged as risky, which block the refund until cleared.
Mismatches between customs data, invoices and the VAT return.
Missing proof that a service was used abroad.
Applying for more than the refundable amount, which is capped by the VAT rate on the exports.
Frequently asked questions
Is there a deadline to claim?
Refund requests must be made within the time limits in the VAT regulations, generally by the end of the second year following the year of the export. Do not let claims build up.
Do services qualify?
Yes, if the customer is abroad and the service is used abroad. Documentation of use abroad is essential.
Can a new company claim?
Yes, but new taxpayers may face closer scrutiny and extra documentation requirements.
Sitting on VAT receivables?
Our Tax Advisory team prepares refund files, coordinates YMM reports and follows the claim with the tax office.
This page provides general information and is not legal or tax advice. Every situation is different; talk to us before you act.