Turkey, a unique country that sits between two continents, namely Asia and Europe, is known for its ancient history, architecture, and culinary excellence. The capital Istanbul is also considered to be the ‘cat capital of the world’ because of the number of cats that exist on the streets, more than any other city across the globe. Stepping into Turkey showcases a century-long architectural marvel, be it the towering domes, intricate mosaics, or the underground labyrinth of Cappadocia. The country is also a haven for nature lovers with its beautiful waterfalls, valleys, and secluded coastal lines.
In addition to the aforementioned, Turkey is a culinary paradise. Whether you take a sip from a cup of freshly brewed Turkish coffee or indulge in the various kebab dishes, you can expect to savor the best of what the country stands for. Additionally, Turkey is also world-renowned for its carpets and rugs, ceramics, amulets, lamps, tea and coffee, spices, and sweets. Having said that, if you are planning to take a recent trip to the country and want to know the VAT (Value Added Tax) refund process before making a foreign purchase, then our in-depth guide should be of help.
What are the Steps to Claim Refund
According to the Turkish customs authorities, foreign passport holders who are not residents of Turkey, as well as citizens of the Republic of Turkey and the Turkish Republic of Northern Cyprus not residing in Turkey, will be able to request a refund of the tax paid on the purchases made within the country.
The process of tax refunds can be requested simply by completing a tax refund request form after shopping at various participating retailers, outlets, or businesses across the country. And the maximum time frame for requesting the refund is three months from the date of the invoice. Also, to provide refunds, the Turkish government has teamed up with a third-party service provider, such as Global Blue, to make the reimbursement process more seamless.
To complete the tax refund process judiciously, simply follow the below-mentioned steps one by one.
- When you are purchasing any item in Turkey, ensure that the shop or retailer that you choose is tax-free. Shops that have tax-free agreements with third-party service providers or the Turkish government will make the refund process easier.
- Proceed to mention that you are a visitor from abroad (non-resident of Turkey) and would like to take advantage of the tax-free shopping available in the country. The shopkeeper will then hand over a tax refund request form, which you need to fill out.
- If the retailer is collaborating with a third-party service provider such as Global Blue, then you need to fill out the ‘Global Blue Tax-Free Form’. And if you are already a Global Blue member, then you only need to present your ‘Shop Tax-Free Barcode’ to get your personal details automatically filled out in the form.
- On the day of your departure, during the customs check-out process, present your tax refund request form along with the products that you have purchased in the country. You also need to showcase your passport and original purchase receipts for validation. It should be known that according to tax-free regulations, all products bought in Turkey must remain unused until the goods have left the country.
- Wait for your tax-free refund process to be carried out with the customs authorities, which is why it is recommended to reach your airport a minimum of one hour in advance of your usual arrival time.
- Once your tax-free form is approved or validated, you need to head over to Global Blue Customer Services or a partner refund point and present your validated or stamped form and passport. Simply look around the airport for a nearby refund office displaying the Global Blue Star logo, or in some cases, a currency exchange.
- You will be asked the method by which you want your tax refund to be credited. For instance, you can choose to obtain the refund in cash or via an online bank transfer. The refund amount will be the VAT paid minus Global Blue’s service charge.
For more information on Global Blue’s tax-free shopping process, visit here.
Know the Requirements
As previously mentioned, the tax-free refund policy in Turkey is meant for people who are traveling to the country for tourist purposes. This means that if you are a resident of Turkey or the Turkish Republic of Northern Cyprus, then you will not be eligible for this scheme. However, if you are a resident of any other country in the world and have not spent more than six months in Turkey, then you will be able to apply for the same.
Each purchased item in Turkey carries a different VAT rate, which means your refund will also vary. For example, textiles, leather goods, carpets, bags, shoes, optics, and books carry a 10 per cent VAT rate. Similarly, jewelry, watches, sunglasses, electronics, homeware, porcelain, and cosmetics carry a 20 per cent VAT rate.
Keep in mind that there is a minimum threshold for each purchase, and the threshold is calculated per invoice. The goods that carry a 10 per cent VAT rate have a minimum spend of 108 TKL (Turkish Lira), and the goods that carry a 20 per cent VAT rate have a minimum threshold of 118 TKL.
