Taxpayers holding an ITUS Certificate under the Reduced Guarantee Application System can benefit from accelerated VAT refunds in Turkey, in line with Article 84 of the Turkish VAT General Communiqué No. 84. Below are the updated limits, guarantee rates, and refund timelines applicable for the 2025 fiscal year in Turkey.
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 threshold of TRY 50,000 (set for 2025):
- 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 from the KDVİRA system, export declarations, special invoices, and confirmation letters—the refund is finalized within 10 business days.
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 – May 2025 Period (Code 301) in Turkey”
- “VAT Refund from Incentive-Based Deliveries – May 2025 Period (Code 308) in Turkey”
2. Enhanced Guarantee with Sworn CPA Report (%120 / %60)
In cash refund applications supported by a Sworn CPA (YMM) VAT Certification Report in Turkey, the taxpayer may opt for an enhanced guarantee method, allowing a faster refund process:
- Standard taxpayers: 120% of refund amount
- ITUS-certified taxpayers: 60% of refund amount
Express Refund Timeline
With all documents and guarantee in place, the refund is processed within 5 business days.
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
-Again, two separate letters of guarantee must be provided.
– Required statements within the letters:
- “VAT Refund from Export of Goods – May 2025 Period (Code 301) in Turkey”
- “VAT Refund from Incentive-Based Deliveries – May 2025 Period (Code 308) in Turkey”
