KDV2 Beyannamesi (Reverse Charge VAT on Foreign Services)
Separate monthly KDV declaration required when a Turkish business purchases services from non-resident providers (foreign software, cloud services, digital advertising, consulting) and must self-assess the 20% KDV under the reverse charge mechanism. Filed in addition to the regular KDV1 return.
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Who this applies to
- Any Turkish business that receives invoices from non-resident service providers without Turkish KDV
- Companies buying Google Ads, Meta Ads, LinkedIn Ads, Microsoft Azure, AWS, Salesforce, or other foreign digital services
- Businesses receiving management fees, royalties, or technical services from non-resident group companies
- Sole traders and self-employed professionals receiving foreign professional services
What to file
KDV2 Beyannamesi: list of foreign service purchases for the month, KDV base (the net service fee invoiced by the foreign provider), 20% KDV self-assessed, and simultaneously claimed as input KDV (indirilecek KDV) — making it net KDV-neutral for full-rate businesses but still requiring declaration.
How to file
Electronically via GIB e-Beyanname portal, as a separate form from KDV1. The 20% KDV self-assessed on the KDV2 feeds into the KDV1 return as both output KDV (from reverse charge) and input KDV (recoverable) — resulting in a net zero impact for businesses with full KDV recovery.
Payment due
Where the business has a net KDV payable position, the reverse-charge KDV2 amount is included in the overall KDV payment due on the 26th. For businesses with surplus input KDV (e.g., exporters), the reverse-charge amount increases their credit balance further.
Penalties for missing this deadline
Failing to file KDV2 for foreign service purchases is treated as failure to declare a taxable supply — penalty of Vergi Ziyai Cezası (1x the tax amount) plus Gecikme Faizi. Revenue Administration e-data matching programs increasingly flag foreign payment outflows without corresponding KDV2 declarations.
Filing checklist
- All invoices from non-Turkish service providers reviewed — identify those without Turkish KDV
- Foreign currency invoices converted to TRY at TCMB rate on invoice date
- Reverse-charge KDV calculated at 20% of each qualifying invoice
- KDV2 filing prepared before the 26th deadline for the month
- Cross-check: confirm the KDV2 amount also appears as indirilecek KDV in the KDV1 return for the same period
Common mistakes to avoid
- Completely unaware of the KDV2 obligation — many small businesses that buy Google Ads or cloud software have never filed KDV2 and are unaware of the requirement
- Paying the foreign invoice from a personal bank account of the owner-director to avoid the KDV2 complexity — this creates an undeclared benefit and does not eliminate the KDV obligation
- Filing KDV2 but not crediting the same amount as input KDV in the KDV1 return — results in overpayment of net KDV
- Applying the wrong rate — some foreign services may have treaty-based exemptions; confirm with your SMMM before applying 20%
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