How VAT works for freelancers in Turkey

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Disclaimer:

This article is for general information only and should not be considered tax advice. It may not be updated in real time and may not reflect recent changes. We strongly encourage you to consult your country’s tax authority or your tax advisor with questions related to your specific situation.

What is Turkey's VAT, and why does Upwork collect it?

Value-added tax (VAT) is a tax on goods or services, including our services to you.

Turkey requires Upwork to collect and send VAT to the government of Turkey unless you provide us with a valid VAT ID in your tax information.

We’re required to comply with the tax laws of countries where we do business to operate there.

What services for freelancers does Turkey's VAT apply to?

Examples of services where VAT applies:

Membership Fees
Connects purchases
Freelancer Service Fees

Since we charge tax when your government requires it, this tax may change or apply to additional services in the future.

What's the Turkey VAT rate?

It's 20% of the cost of the service being taxed.

Example: On $100 USD in freelancer service fees, you'll pay $20 in tax, for a total of $120.

You’ll see the estimated amount of tax on your invoices and in your transactions.

Am I required to provide a Turkey VAT ID?

No, but if you provide a valid VAT ID to Upwork in your tax information, we will not have to collect this tax from you.

We'll also display the ID your provide on your invoices.

What's the Turkey VAT ID format?

It's a unique ID that you can request from your government by registering for VAT in Turkey - not your tax ID number. It has 10 numbers — like this, for example: 1234567890.

To learn more, visit the Turkey tax authority’s website.

How do I enter my Turkey VAT ID on Upwork?

Go to Manage finances > Tax information
Click on the pencil icon to enter or edit your info
Select Save

Once you enter your info, we’ll check whether the VAT ID you provide is valid and give you a prompt response when you enter it. You can also see your VAT ID status on your tax information page.

Does Turkey offer any exemptions to VAT?

Turkey does not offer any applicable exemptions from VAT on services that Upwork provides, but you can avoid VAT charges being collected by Upwork by providing a valid VAT ID.

What happens to Turkey's VAT if I change my location or information?

If you update your tax residence in your tax information, we'll automatically adjust what we collect to correspond with any taxes that apply in your new country or jurisdiction. You may have to enter a new VAT ID or similar ID.
If you make other changes to your information, such as changing your legal name, you may have to revalidate your VAT ID.

Who has to pay Turkey's VAT?

Turkey’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Turkey and have not provided us with a valid VAT ID.

What if I’m only residing in Turkey temporarily?

Yes. As long as your tax residence is set to Turkey, we’re required to collect them. If you move, update your tax information — we’ll adjust accordingly.

If I pay VAT before I enter a valid Turkey VAT ID, will you refund that money once I enter it?

No, we remit that money directly to the Turkey government and will not be able to refund it. You may be able to claim a credit with your tax authority for what you paid. We recommend that you consult with your government’s tax authority or your tax advisor for more information.