Contact

Accounting and Bookkeeping

Payables and Payment Management

Checking and recording supplier invoices, objecting to invoices, VAT (KDV) deduction, payment planning and due date tracking, taxes payable as responsible party on services purchased from abroad, and valuation of foreign currency payables in Türkiye.

Contact form
Work desk with a laptop, a calendar and a payment plan

Overview

Payables and payment management is the process that runs from checking and recording invoices received from suppliers to making and documenting the payment. Objecting to the content of an invoice on time, recording it on time and using the VAT deduction within the deadline determine the tax consequences of this process.

Transactions are recorded in the books on time; entries may not be delayed by more than ten days. (Tax Procedure Law No. 213, Art. 219) The right of deduction may be used in the tax period in which the relevant documents are recorded in the statutory books, provided that the calendar year following the calendar year in which the taxable event occurred is not exceeded. (VAT Law No. 3065, Art. 29/3)

KEYBIZ CPAs & Advisors handles the checking and recording of incoming invoices, due date and payment tracking, returns filed as responsible party and year-end valuation entries. For transactions on the sales side, see our Receivables and Invoicing page.

From Incoming Invoice to Payment

  1. Checking the Invoice

    The incoming invoice is compared with the order, contract and delivery documents. The minimum information that must appear on the invoice is checked (VUK Art. 230):

    • Date of issue, series and serial number
    • Name or trade name, business address, tax office and tax number of the issuer
    • Name or trade name and address of the buyer and, if any, its tax office and tax number
    • Type, quantity, price and amount of the goods or work
    • Delivery date and dispatch note (irsaliye) number of the goods sold

    It is also checked whether the invoice was issued within seven days from the date of delivery or service; an invoice not issued within this period is deemed not to have been issued at all. (VUK Art. 231/5)

  2. Objecting to the Invoice

    A person who receives an invoice and does not object to its content within eight days of receipt is deemed to have accepted that content. (Turkish Commercial Code No. 6102, Art. 21/2) For this reason, for invoices with differences in amount, quantity or price, the supplier is notified within the objection period.

  3. Recording and VAT Deduction

    The invoice is recorded in the books on time; entries may not be delayed by more than ten days. (VUK Art. 219) VAT shown separately on the invoice may be deducted provided that the document is recorded in the statutory books (VAT Law No. 3065, Art. 34), and the right of deduction may be used until the end of the calendar year following the year in which the taxable event occurred. (VAT Law No. 3065, Art. 29/3)

  4. Payment Plan and Due Date Tracking

    Recorded payables are tracked by supplier and due date. A payment plan is prepared according to cash flow, payables approaching or past their due date are reported, and periodic balance reconciliations are carried out with suppliers. For details, see our Account Reconciliations page.

  5. Documenting the Payment

    The Ministry of Treasury and Finance is authorised to require taxpayers to document their collections and payments with documents issued by banks, similar financial institutions or postal administrations, and to set the scope of this requirement. (Tax Procedure Law No. 213, Additional Art. 257) For this reason, payments are matched with the related invoice, made through bank records and archived.

Taxes Payable as Responsible Party on Services Purchased from Abroad

VATCorporate Tax Withholding
BasisFor services obtained from persons who have no residence, workplace, legal seat or place of business in Türkiye and used in Türkiye, the tax is paid by the recipient of the service as responsible party (VAT Law No. 3065, Art. 9/1, VAT General Implementation Communiqué (KDV Genel Uygulama Tebliği) I/C-2.1.2.1.1)Those who pay or accrue, in cash or on account, earnings and income such as self-employment income, income from immovable property and income from movable capital to non-resident (limited taxpayer) corporations make a withholding (Corporate Tax Law No. 5520, Art. 30/1)
DeclarationDeclared and paid as responsible party with VAT return Form No. 2The tax withheld is declared with the withholding return (KVK Art. 31)
Deduction or RateVAT declared and paid as responsible party may be deducted in VAT return Form No. 1 under the general rules (VAT Law No. 3065, Art. 29/1-ç)The statutory rate is 15% (KVK Art. 30/1, 30/2); the rate applied is set separately by payment type by Council of Ministers Decision No. 2009/14593 and the Presidential Decisions amending it (KVK Art. 30/8). The rates are shown in the table below.
International Agreements—The provisions of double tax treaties are reserved (KVK Art. 35)

VAT Law Art. 9, VAT General Implementation Communiqué, KVK Art. 30, 31, 35

International Tax

Withholding Tax Rates on Payments to Foreign Corporations

Payment TypeStatutory Rate (KVK Art. 30)Rate Applied (Decision)
Self-Employment Income (Consulting, Engineering and Similar Services)15% (KVK Art. 30/1-b)5% on payments for oil exploration activities, 20% on others. (Council of Ministers Decision No. 2009/14593)
Income from Immovable Property (Including Leasing of Intangible Rights, Licence Fees and Royalties)15% (KVK Art. 30/1-c; GVK Art. 70)20%; 1% on income from immovable property derived from activities under Financial Leasing Law No. 3226. (Council of Ministers Decision No. 2009/14593)
Sale, Transfer and Assignment of Intangible Rights15% (KVK Art. 30/2)20% (Council of Ministers Decision No. 2009/14593)
Online Advertising ServicesKVK Art. 30/1-d15% on payments to those providing the service or acting as intermediaries for it. (GİB – Corporate Tax Withholding Rates)
Interest on All Kinds of Receivables15% (KVK Art. 30/1-ç)0% on interest on loans obtained from foreign states, international institutions, foreign banks and institutions customarily authorised to lend in their country; 5% on maturity differences arising from the supply of goods; 10% on others. (Council of Ministers Decision No. 2009/14593)

If a double tax treaty is in force with the country to which the payment is made, the treaty may provide for a lower rate; to benefit from this rate, a certificate of residence is submitted, and if the certificate cannot be submitted, the domestic rate applies. (KVK Art. 35, Circular ÇVÖA/2013-1) GİB – Corporate Tax Withholding Rates (2026).

International Tax

Invoices with VAT Withholding and Foreign Currency Payables

VAT withholding: To secure the tax receivable, the Ministry of Treasury and Finance may hold those who are party to taxable transactions responsible for paying the tax. (VAT Law No. 3065, Art. 9/1) When a purchase subject to withholding is made, the buyer declares the part of the VAT shown on the invoice that is specified in the communiqué as responsible party with VAT return Form No. 2. The transactions subject to withholding and the rates to be applied are set out in the VAT General Implementation Communiqué. For details, see our Indirect Taxes page.

Foreign currency payables: Payables are valued at their book value; payables based on deposit or loan agreements are taken into account together with the interest accrued up to the valuation date. (Tax Procedure Law No. 213, Art. 285) Foreign currencies are valued at the stock exchange rate, and this provision also applies to payables in foreign currency, whether or not evidenced by notes; if there is no stock exchange rate, the rate to be used is set by the Ministry. (Tax Procedure Law No. 213, Art. 280)

Frequently Asked Questions

Within What Period Must an Objection to an Incoming Invoice Be Made?

A person who receives an invoice and does not object to its content within eight days of receipt is deemed to have accepted that content. (TTK Art. 21/2)

By When Must Purchase Invoices Be Recorded in the Books?

Transactions are recorded in the books on time, and entries may not be delayed by more than ten days. (VUK Art. 219)

Can the VAT on a Late-Arriving Invoice Be Deducted?

The right of deduction may be used in the tax period in which the document is recorded in the statutory books, provided that the calendar year following the calendar year in which the taxable event occurred is not exceeded. (VAT Law No. 3065, Art. 29/3)

How Is VAT on Services Purchased from Abroad Declared?

For services obtained from persons who have no residence, workplace, legal seat or place of business in Türkiye and used in Türkiye, VAT is declared and paid by the recipient of the service as responsible party with VAT return Form No. 2. This tax, once declared and paid, may be deducted in VAT return Form No. 1 under the general rules. (VAT Law No. 3065, Art. 29/1-ç) (VAT Law No. 3065, Art. 9/1, VAT General Implementation Communiqué I/C-2.1.2.1.1)

Is There Withholding Tax on Payments Abroad?

Those who pay or accrue earnings and income such as self-employment income, income from immovable property or income from movable capital to non-resident corporations make a corporate tax withholding. (KVK Art. 30) The statutory rate is 15%; the rate applied differs by payment type: for example, 20% on payments for self-employed services and between 0% and 10% on interest on receivables. (Council of Ministers Decision No. 2009/14593) A double tax treaty signed with the relevant country may provide for a lower rate; in that case, a certificate of residence is submitted. (KVK Art. 35, Circular ÇVÖA/2013-1)

How Are Foreign Currency Payables Valued at Year-End?

Payables in foreign currency are valued at the stock exchange rate; if there is no stock exchange rate, the rate to be used is set by the Ministry. (VUK Art. 280, 285)

Ask about Payables and Payment Management

Fill in the form to contact us. The service field is preselected for this page and can be changed.





    Privacy notice