0% VAT on International Freight
Under Turkish VAT Law Article 14, international transport services are 100% exempt from VAT.
RECOMMENDED ENTITY
Limited Liability Company (LLC)
The industry standard for agency agreements, shipping line contracts, and transport permits.
OFFICE REQUIREMENTS
Virtual or Commercial Office
Commercial office for forwarding mediation; physical licensed depot for cargo storage.
REQUIRED LICENSES
- Ministry of Transport TİO (Transport Organizer) Authorization License
- Customs Agency & Bill of Lading (B/L) System Entry
- Official Commercial Registry & Tax Certification
- CMR & Freight Insurance Protocol Setup
SECTOR HIGHLIGHTS
Key Operational Strengths
TİO Forwarding License Support
Structuring capital and documentation to fulfill Ministry of Transport regulatory standards.
TAX INCENTIVES & EXEMPTIONS
Sector Tax Advantages in Turkey
✓ International Freight Tax Exemption
Zero-rated VAT treatment on cross-border logistics and shipping services.
FORMATION JOURNEY
Ready in 4 Seamless Steps
STEP 01
Logistics Entity Formation
Establishing the corporate entity with comprehensive multi-modal transport objects.
STEP 02
Commercial Registry & Tax Clearance
Notarizing company books, registering at the Chamber of Commerce, and issuing tax plates.
STEP 03
Transport Ministry Licensing
Executing the TİO license application with the Ministry of Transport.
STEP 04
Banking & International B/L Setup
Activating corporate foreign currency accounts and cross-border invoicing structures.
BARUT GROUP / CORPORATE INTELLIGENCE
Which Corporate Entity Fits Your Business?
Compare legal liability, partnership flexibility, and tax structures to choose the ideal business vehicle in Turkey.
Select Your Profile:
Sole Proprietorship
Sole Proprietorship
Fast single-person registered enterprise.
Legal & Financial Liability
Unlimited (Personal assets are fully liable)
Foreign Partner Capacity
Strictly 1 person (Cannot add partners)
Work Permit Feasibility
Restricted and higher scrutiny
Tax Structure
Progressive Income Tax (15% to 40%)
Best Suited For
Freelancers, independent consultants, and early-stage solo e-commerce sellers.
MOST POPULAR FOR FOREIGN INVESTORS
Limited Liability Company (LLC)
Limited Liability (LLC)
The standard flexible corporate vehicle for international business.
Legal & Financial Liability
Shareholder liability is limited as a general rule, subject to statutory exceptions including certain public debts and the duties of managers and legal representatives.
Foreign Partner Capacity
1 to 50 partners (Allows 100% foreign ownership)
Work Permit Feasibility
Foreign partner or manager work permit eligibility is assessed under prevailing statutory criteria and individual merits. Company formation alone does not guarantee a work permit or residence.
Tax Structure
Standard Corporate Tax rate is 25% (updated 2026), with deductibility of tax-allowable expenses under statutory conditions and supporting documents, subject to sector exemptions.
Best Suited For
E-commerce, import/export, tech startups, logistics, consulting, and growth companies.
Joint Stock Company (JSC)
Joint Stock (A.Ş.)
Large-scale capital projects and structured share transfers.
Legal & Financial Liability
Shareholder liability is generally limited to committed share capital, without prejudice to liabilities arising from management, legal representation, or personal guarantees.
Foreign Partner Capacity
1 person to unlimited shareholders
Work Permit Feasibility
Eligibility of board members and foreign directors is assessed under statutory regulations; no guaranteed outcome is implied.
Tax Structure
Standard Corporate Tax rate is 25% (updated 2026), with allowable expense deductions and statutory share transfer exemptions where applicable.
Best Suited For
Industrial manufacturing, investment funds, holding structures, and corporate ventures.
FAQ
Frequently Asked Questions
Do international freight invoices in Turkey include VAT?
No, international shipping and freight forwarding services originating from or terminating in Turkey are 0% VAT exempt.
SECTOR DIRECTORY
Explore Other Business Sectors
Explore sector-specific tax exemptions, regulatory compliance, and setup requirements in Turkey.
01E-Commerce & Digital Marketplaces
Start an E-Commerce Company in Turkey 2026
LLC Incorporation, E-Invoice (E-Fatura), ETBİS Registration for Amazon, Etsy & Trendyol
02Software & Technology
Form a Software & Tech Company in Turkey
Teknokent 0% Corporate Tax Exemptions, Software Export Incentives & R&D Subsidies
03Import, Export & Global Trade
Incorporate an Import & Export Company in Turkey 2026
Customs Registration, Exporters Association Membership & VAT (KDV) Refund Management
04Tourism & Travel Agency
Establish a Tourism Agency in Turkey & TÜRSAB License
Group A Travel Agency Certification, Medical Tourism Accreditation & Tour Operator Setup
05Liaison Office & Foreign Branch
Open a Liaison Office or Branch in Turkey 2026
0% Corporate Tax, 0% Expat Salary Income Tax, and Market Intelligence Operations