As of January 1, 2018, Turkey requires non-resident entities like Twilio Inc. & it's affiliates (“Twilio”) to collect Value Added Tax (VAT) for any Electronically Supplied Services (“ESS”) sold to non-registered VAT customers located in Turkey. This guide covers how Twilio charges VAT and what services are taxable.
Notice: Twilio services may be subject to tax in various countries, states and/or localities. To see if Twilio collects taxes in your country, please see the Taxes section of our Support Help Center
The following topics are discussed in this guide. Click a topic to skip directly to this information:
- Value Added Tax (VAT) overview.
- When will Twilio start charging VAT in Turkey?
- How can I be tax exempt for VAT?
- I am a business, but do not have a VAT number. I am not required to register for VAT since my business falls under the required sales threshold for registering.
- How do I enter my VAT number?
- How is VAT determined?
- What rate is VAT charged in Turkey?
- I forgot to enter my VAT number, but am a VAT registered B2B customer - Can I get a refund?
- Where can I see the VAT charged on my Invoice?
Value Added Tax (VAT) overview
Turkish Revenue Administration (Gelir İdaresi Başkanlığı -GİB) passed legislation effective January 1, 2018, requiring non-resident entities selling digital services to collect and remit a 20% Value Added Tax (VAT) on its sales to non-registered VAT customers located in Turkey. Non-residents are only required to apply VAT on Business to Customer (B2C) transactions. Business to Business (B2B) transactions will not be charged VAT if a valid VAT number is provided by the B2B customer.
When will Twilio start charging VAT in Turkey?
Twilio will begin collecting VAT on services sold to customers located in Turkey starting in March 2025. VAT is assessed and applied to your account at the start of the month for the previous month’s usage. For example, you will be charged VAT for your March usage in April.
How can I be tax exempt for VAT?
B2B customers with a valid VAT number will not be taxed on our end. In order to be exempt, B2B customers need to enter their VAT number in the Invoicing Settings page in Console. However, B2B customers are still responsible for the VAT and should self-assess the VAT through the reverse charge mechanism on their Turkey VAT return.
I am a business, but do not have a VAT number. I am not required to register for VAT since my business falls under the required sales threshold for registering.
The VAT laws for nonresidents are designed to capture VAT from B2C consumers and from B2B consumers that fall under the sales threshold. Unless a B2B customer can provide a valid VAT number, they will be considered a B2C and the transaction will be subject to tax. Non-residents are not required to tax B2B customers with valid VAT numbers since B2B customers are supposed to self-assess the VAT on their end
How do I enter my VAT number?
B2B customers can enter their VAT number in the “Business Tax ID” field on the Billing Preferences page in Console.
A valid Turkish VKN might look like this 1234567890.
How is VAT determined?
VAT is applicable based on the type of products or services that are purchased. We have determined that most of Twilio’s products & services are subject to VAT.
Please confirm your service address is up to date in the Twilio Console for accurate taxation in the correct jurisdiction. For help updating your service address, see How do I Update my Billing Settings.
What rate is VAT charged in Turkey?
Twilio's services will be subject to the 20% VAT rate as determined by the Turkish Revenue Administration (Gelir İdaresi Başkanlığı -GİB)
I forgot to enter my VAT number, but am a VAT registered B2B customer - Can I get a refund?
If you are a B2B customer with a valid VAT number in Turkey, please contact our Support team for a credit of the VAT amount charged within 90 days of the initial charge. For invoices issued in closed periods, we will credit the VAT charged in the following month’s invoice. You will see the credit listed as Promo - VAT.
Where can I see the VAT charged on my Invoice?
VAT can be found on your invoice in the Usage Summary section under “Taxes”. This line item represents the VAT charged.
For more details, see Reading your Twilio Invoice.