Invoicing Turkish Clients: TRY Invoices, KDV Rates, and e-Arşiv Rules Explained

Last updated: June 2026

Turkish businesses are active participants in international commerce, and many foreign companies (UK freelancers, European agencies, US SaaS providers) count Turkish clients among their customer base. The rules for invoicing those clients correctly depend primarily on whether you, the seller, have a Turkish tax registration.

This guide covers both scenarios: the foreign business with no Turkish registration, and the business that has a Turkish VKN (either a locally registered entity or a foreign company with a Turkish branch or representative office).

Scenario 1: You are a foreign business with no Turkish tax registration

If you are based outside Turkey, operating under a foreign company or sole-trader structure, and you have never registered with GİB (Turkey's Revenue Administration), then:

• You are NOT required to issue e-Arşiv invoices
• You are NOT required to charge Turkish KDV on your services
• You issue invoices in your normal format: a PDF invoice from your own system, in whatever format your home jurisdiction requires

The e-Arşiv obligation sits with Turkish-registered businesses. Your invoice, as a foreign business without a Turkish VKN, does not go through the GİB system.

What your Turkish business client does with your invoice

When a Turkish business receives an invoice from a foreign supplier for services, Turkey's KDV law typically requires the Turkish business to self-assess the KDV under the reverse-charge mechanism (tevkifat/sorumlu sıfatıyla KDV). Your Turkish client declares the KDV themselves on their own KDV return.

This is common for imported services: consulting, software licences, cloud services, professional fees, marketing services, and similar intangibles. The economic effect is that the Turkish business calculates what KDV would have been (at the applicable rate, usually 20% for services), pays that to GİB in their own name, and simultaneously claims it back as input tax. For most business-to-business service purchases, it is KDV-neutral for the Turkish buyer.

Your invoice to the Turkish client should NOT include Turkish KDV, as you are not registered to collect it. If you inadvertently add Turkish KDV on your invoice, it creates complications for your client (they cannot claim it back unless you are GİB-registered).

Invoice requirements for foreign suppliers

While there is no GİB format obligation on a foreign supplier, your Turkish business client will want your invoice to include:

• Your full legal name and business address
• Your local tax identification number (VAT number, EIN, company registration number, or whatever your home jurisdiction uses)
• A clear description of the services or goods supplied
• The amount in your billing currency (see currency section below)
• The invoice date
• Your payment details

Your Turkish client may also ask for your invoice on company letterhead and request a stamp (kaşe), a practice still common in Turkish business culture, though legally the invoice content matters more than its format for tax purposes.

Can you issue invoices in foreign currency?

Yes. As a foreign supplier, your invoices are naturally in your home currency (GBP, EUR, USD, etc.). This is entirely normal and expected.

Your Turkish business client records the invoice in Turkish Lira in their books, using the TCMB (Central Bank of Turkey) exchange rate on the date of the transaction. They handle the TRY equivalent calculation. You do not need to do this for them.

Scenario 2: You are a foreign business WITH a Turkish tax registration (VKN)

If your foreign company has a Turkish VKN, through a Turkish subsidiary (limited şirketi or anonim şirket), a liaison office (irtibat bürosu), or a branch office, then Turkish tax law applies to your Turkish-registered entity.

From 1 January 2026, every invoice issued by a Turkish-registered entity must comply with e-Arşiv rules regardless of the nationality of the ultimate beneficial owner or the location of the parent company. Your Turkish VKN entity is a Turkish taxpayer and must issue e-Arşiv invoices for every sale.

The ₺3,000 threshold that applied until 31 December 2025 no longer exists. Every invoice from your Turkish entity, whether to a Turkish client or a foreign client, must go through e-Arşiv (or e-Fatura if you are a larger entity on the e-Fatura network). See The ₺3,000 e-Arşiv threshold is gone: what every Turkish small business must do now.

Issuing e-Arşiv invoices to foreign clients from a Turkish entity

When your Turkish-registered company invoices a foreign client:

1. The invoice goes through the GİB e-Arşiv Portal (or AccountsOS) as normal
2. The invoice can be in a foreign currency. KDV is still declared in Turkish Lira.
3. KDV is typically 0% for exported services (if the service meets the export criteria under Turkey's KDV legislation). Confirm with a Turkish tax advisor whether your specific service qualifies for the 0% rate.
4. The UBL-TR 1.2.1 XML format is required even for foreign-currency invoices to foreign clients

AccountsOS handles multi-currency e-Arşiv invoices with automatic TCMB rate lookup for the invoice date.

Currency rules for Turkish e-Arşiv invoices

Turkish businesses may issue invoices in foreign currencies (USD, EUR, GBP, and other freely convertible currencies). The rules:

What the invoice must show

Every e-Arşiv invoice with a foreign currency component must include BOTH:

1. The invoice amounts in the foreign currency (line items, KDV, total)
2. The Turkish Lira equivalent at the TCMB (Central Bank of Turkey, T.C. Merkez Bankası) effective selling rate on the invoice date

The formula: TRY amount = foreign currency amount × TCMB selling rate for that currency on that date.

The TCMB publishes daily exchange rates at tcmb.gov.tr. The "satış kuru" (selling rate) or "efektif satış" (effective selling rate) is the reference used for tax purposes. For currency not covered by TCMB rates, GİB communiqués specify alternative cross-rate calculations.

KDV calculation

KDV is always calculated and declared in Turkish Lira, not in the foreign currency. Even if the invoice total is USD 10,000, the KDV amount (if applicable) is calculated as: TRY equivalent × KDV rate.

AccountsOS fetches the TCMB rate automatically and calculates the TRY amounts for inclusion in the UBL-TR XML.

When is a foreign-currency invoice zero-rated for KDV?

Services exported from Turkey to foreign buyers can qualify for KDV exemption (0% KDV) if they meet the conditions in Turkey's KDV Law (Article 12, services exported to non-residents). Broadly:

• The service must be performed in Turkey for a foreign client outside Turkey
• The payment must be received in a foreign currency (transferred into Turkey through banking channels)
• The benefit of the service must be consumed outside Turkey

This is a complex area and the conditions are strict. For software development, design, or professional consulting services performed in Turkey and delivered to foreign clients, the 0% KDV rate may apply, but always confirm with a Turkish tax advisor before applying zero-rating.

KDV rates in Turkey for 2026

For Turkish businesses issuing invoices to Turkish or foreign clients, the KDV rates are:

20% (standard rate): Applies to most services and goods not in the reduced categories. Professional services, consulting, technology services, agency and marketing services, general B2B commercial services.

10% (reduced rate): Food products (most processed foods, dairy, meat, certain fresh produce), restaurant and catering services, newspapers and magazines, accommodation (hotel and similar), certain health services, some agricultural inputs.

1% (super-reduced rate): Selected basic foods (bread, flour, certain fresh vegetables and fruits in season), certain agricultural chemical inputs, some social housing construction.

0% (export rate): Goods exported from Turkey (customs-documented); services meeting the exported service criteria above.

When in doubt about the applicable KDV rate for your specific product or service, consult GİB's KDV guide (Katma Değer Vergisi Genel Uygulama Tebliği) or ask Finn in AccountsOS, the AI accountant, who can confirm the correct KDV rate for your category.

Issuing invoices in Turkish Lira versus foreign currency: practical advice for Turkish entities

If you have a Turkish-registered entity and most of your clients are in Turkey, TRY invoicing is simpler: no exchange rate lookups, no dual-currency invoice presentation. For international clients, foreign-currency invoicing is normal and expected. Just ensure the TCMB conversion is included in the UBL-TR XML.

From a cashflow perspective, if you invoice in TRY but your costs are in foreign currency (e.g., you pay overseas suppliers in USD), currency depreciation creates margin pressure. Many Turkish businesses invoicing international clients use USD or EUR pricing to hedge this exposure.

AccountsOS supports both TRY and foreign-currency invoicing from the same platform, with automatic TCMB rate application and KDV calculation in TRY for compliant e-Arşiv issuance.

When Turkish businesses invoice foreign companies: withholding tax (stopaj)

Separate from KDV, Turkish tax law applies withholding tax (stopaj) to certain payments made by Turkish businesses to foreign companies, particularly royalties, licences, technical services, and management fees. This is a corporate tax concept, not KDV.

If you are a foreign company receiving payments from a Turkish business for services that Turkey classifies as subject to withholding, your Turkish client may withhold a percentage of your invoice (typically 10-20% depending on the service type and any applicable double taxation treaty) and pay it to GİB in your name.

This does not affect your invoice format. You still issue a standard invoice for the full amount. Your Turkish client handles the withholding and issues you a withholding receipt (vergi kesinti belgesi) for the withheld amount. Under an applicable double taxation treaty (the UK-Turkey DTA, for example), the rate may be reduced.

Practical checklist for foreign businesses invoicing Turkish clients

For non-Turkish businesses:

• Issue your invoice in your normal format (PDF, Word, accounting software export)
• Do NOT add Turkish KDV to your invoice unless you are KDV-registered in Turkey
• Include your home-jurisdiction tax identifier on the invoice
• Invoice in your own currency (GBP, EUR, USD, etc.). Your client converts.
• Be aware your client may deduct withholding tax from the payment. Check your applicable double taxation treaty.
• Keep copies of all invoices for your own audit trail

For Turkish-registered businesses invoicing Turkish and foreign clients:

• All invoices must go through e-Arşiv from 1 January 2026 (the ₺3,000 threshold no longer applies)
• Foreign-currency invoices must show both the foreign amount and the TRY equivalent at the TCMB rate
• KDV is calculated in TRY regardless of the invoice currency
• Zero-rating for exported services requires meeting strict GİB conditions
• Archive the UBL-TR XML and PDF for 10 years

How AccountsOS supports Turkish-registered businesses with international clients

AccountsOS handles multi-currency e-Arşiv invoicing end-to-end:

• Enter the invoice in any supported currency
• AccountsOS fetches the TCMB rate for the invoice date automatically
• The UBL-TR XML includes both the foreign currency amounts and the TRY equivalents
• KDV is calculated in TRY
• The invoice is submitted to GİB, SMS approval is requested, and the PDF is delivered to the customer
• Both the PDF (with the GİB UUID) and the UBL-TR XML are archived

For foreign clients who prefer to receive invoices without the Turkish-language GİB PDF format, AccountsOS can also generate a clean English-language invoice summary to accompany the official GİB document.

Try AccountsOS free for 14 days and issue your first e-Arşiv invoice in any currency at accounts-os.com/signup.

Frequently Asked Questions

Do I need to register for Turkish KDV if I supply services to Turkish clients?

If you are a foreign business with no Turkish establishment (no VKN), you are generally not required to register for Turkish KDV for B2B supplies. Your Turkish business client handles the reverse-charge KDV. However, if you supply digital services to Turkish consumers (B2C), Turkey's KDV rules on digital services may require foreign providers to register. This is a complex area; consult a Turkish tax specialist.

Should I invoice in TRY or in my home currency?

For a foreign business without a Turkish registration, invoice in your home currency: GBP, EUR, USD, etc. Your Turkish client will convert to TRY in their books. Invoicing in TRY as a foreign entity creates complications (you would be quoting a currency you do not have a bank account for, and your client would need a SWIFT payment in TRY to your foreign bank).

What is the reverse-charge KDV mechanism?

Reverse charge (sorumlu sıfatıyla KDV) is the mechanism by which a Turkish business recipient of services from a foreign supplier self-assesses the KDV that would normally be charged. The Turkish business calculates the KDV, reports it on their KDV return as both output tax (KDV collected) and input tax (KDV paid) simultaneously. For most B2B purchases, this is KDV-neutral for the recipient, but the correct declaration is required.

Can a foreign business voluntarily register for KDV in Turkey?

Yes, foreign businesses with economic activity in Turkey (even without a physical establishment in some cases) can apply for KDV registration. This may be beneficial if you have significant Turkish input costs that generate KDV credits. Voluntary registration comes with Turkish tax compliance obligations including KDV returns and e-Arşiv issuance.

Does Turkey have a double taxation treaty with the UK?

Yes, there is a UK-Turkey double taxation agreement. It covers withholding tax rates on dividends, interest, royalties, and technical service fees paid between the two countries. Under the treaty, withholding tax on royalties and technical fees from Turkish businesses to UK recipients is typically limited to 10%. The precise rate depends on the nature of the payment. Check the current treaty text with HMRC's double taxation agreements list or a Turkish tax advisor.

My Turkish client says they need a GİB-approved invoice. What do I issue?

If you are a foreign business without a Turkish VKN, you cannot issue a GİB-approved e-Arşiv invoice, as you are not registered in the GİB system. What your Turkish client actually needs from you is a valid commercial invoice (in your normal format) that shows your identity, the service description, and the amount. They will process the reverse-charge KDV on their own return. If they specifically need a GİB-issued document, they may be confused about how foreign invoices are treated. The GİB documentation obligation is on THEM as the recipient, not on you.

What is the UBL-TR format and do I need to use it?

UBL-TR 1.2.1 is Turkey's national e-invoice XML standard, mandatory for Turkish-registered businesses issuing e-Arşiv and e-Fatura invoices since 2 February 2026. If you are a foreign business without a Turkish VKN, you do not use UBL-TR. If you are a Turkish-registered entity, your invoices must comply with UBL-TR 1.2.1. The GİB e-Arşiv Portal and AccountsOS generate the correct XML automatically. See What is UBL-TR 1.2.1 and do small businesses need to care?.

How does AccountsOS handle invoices to foreign clients from a Turkish company?

AccountsOS supports multi-currency invoicing for Turkish-registered businesses. You enter the invoice in the foreign currency, AccountsOS fetches the TCMB rate and calculates the TRY equivalents, generates the compliant UBL-TR 1.2.1 XML, submits to GİB for e-Arşiv approval, and delivers the PDF to your foreign client. The entire process is automated except for the SMS approval step, which requires your physical phone.