Taxpayers holding an ITUS Certificate under the Reduced Guarantee Application System may benefit from accelerated VAT refunds in Turkey in line with Article 84 of the Turkish VAT General Communiqué.
The framework outlined below reflects the current ITUS-based VAT refund practice applied in 2026, including applicable thresholds, guarantee rates, and refund timelines.
1. Standard ITUS Guarantee Application (%8 / %4)
Taxpayers with a valid ITUS Certificate in Turkey may apply for a cash VAT refund by submitting a letter of guarantee for the portion exceeding the statutory threshold of TRY 50,000.
- Standard taxpayers: 8% guarantee
- Foreign Trade Capital Companies / Sectoral Foreign Trade Companies: 4% guarantee
Refund Processing Timeline
Once all required documents are submitted — including the VAT Refund Control Report generated via the KDVİRA system, export declarations, special invoices, and confirmation letters — the refund is generally finalized within approximately 10 business days, provided that the documentation is complete and compliant.
Sample Guarantee Calculation (Standard Application)
301 – VAT Refund from Export of Goods
- Total Refund Amount: TRY 5,050,000
- Threshold: TRY 50,000
- Subject to Guarantee: TRY 5,000,000
- 8% Guarantee Required: TRY 400,000
308 – VAT Refund from Investment Incentive Deliveries
- Total Refund Amount: TRY 850,000
- Threshold: TRY 50,000
- Subject to Guarantee: TRY 800,000
- 8% Guarantee Required: TRY 64,000
- Separate bank letters of guarantee must be issued for each refund type.
- Each guarantee letter must include the following expressions:
“VAT Refund from Export of Goods – Relevant VAT Period (Code 301)”
“VAT Refund from Incentive-Based Deliveries – Relevant VAT Period (Code 308)”
2. Enhanced Guarantee with Sworn CPA (YMM) Report (%120 / %60)
In cash VAT refund applications supported by a Sworn CPA (YMM) VAT Certification Report, taxpayers may opt for an enhanced guarantee method, allowing for an accelerated refund process.
- Standard taxpayers: 120% of the refund amount
- ITUS-certified taxpayers: 60% of the refund amount
Express Refund Timeline
Where all supporting documents and guarantees are duly submitted, the refund is typically processed within approximately 5 business days, subject to administrative review and completeness of the application.
Sample Guarantee Calculation (Enhanced Method)
301 – VAT Refund from Export of Goods
- Total Refund Amount: TRY 5,050,000
- Threshold: TRY 50,000
- Subject to Guarantee: TRY 5,000,000
- 60% Guarantee Required: TRY 3,000,000
308 – VAT Refund from Investment Incentive Deliveries
- Total Refund Amount: TRY 850,000
- Threshold: TRY 50,000
- Subject to Guarantee: TRY 800,000
- 60% Guarantee Required: TRY 480,000
- Two separate letters of guarantee must again be provided.
- Required statements within the letters:
“VAT Refund from Export of Goods – Relevant VAT Period (Code 301)”
“VAT Refund from Incentive-Based Deliveries – Relevant VAT Period (Code 308)”
Practical Considerations for 2026
- The ITUS mechanism, guarantee structures, and refund methodology continue to apply under the current VAT refund framework.
- Thresholds, guarantee rates, and processing timelines are determined based on existing legislation and established administrative practice.
- Proper documentation, accurate reporting through KDVİRA, and correctly worded guarantee letters remain critical for expedited processing.
Important Notice
ITUS-based VAT refunds remain an effective acceleration mechanism for qualifying taxpayers in Turkey, subject to compliance with the applicable conditions and documentation requirements. The thresholds, guarantee rates, and processing timelines outlined above reflect the consolidated VAT refund framework applied as of 2026 and may be subject to change through amendments to tax legislation, secondary regulations, or administrative practice.
