When you use Shopify from Turkey, there are two separate tax topics: the VAT on the subscription bill Shopify charges you, and the tax obligations on the sales you make to your customers. Shopify adds VAT to the subscription bills of stores in Turkey; if you enter your 10-digit tax identification number, that VAT is removed from the bill and you declare the VAT yourself under the reverse charge mechanism. For your sales, tax registration, issuing invoices (e-Invoice or e-Archive) and VAT returns are entirely your responsibility; Shopify only provides the technical settings that help you apply tax to your prices.
In this article we cover both topics step by step. As tax legislation is updated frequently and varies with your business's circumstances, we strongly recommend talking to a financial adviser before applying any of it.
1. VAT on Shopify bills
The bills Shopify issues for subscription, app and transaction fees count as electronic services purchased from abroad.
If you don't enter a tax number: Shopify adds VAT to the bills of stores in Turkey.
If you enter a tax number: the bill is issued without VAT. In that case, under the reverse charge rules for services purchased from abroad, you declare and pay the VAT yourself on VAT return No. 2. Depending on your tax status, you can deduct this VAT.
To add your tax number, go to the billing profile section on the Settings → Billing page in your Shopify admin and enter your 10-digit tax identification number in the tax registration field. Only the store owner can do this. If the field doesn't appear, you can contact Shopify Support.
Shopify bills are issued in US dollars. You'll need to work with your financial adviser on exchange differences and recording the expense.
2. VAT settings for your sales
The standard VAT rate in Turkey has been 20% since July 2023. Reduced rates of 10% and 1% apply to some product groups. Confirm with your financial adviser which rate applies to your products.
You can set up tax settings on Shopify as follows:
Go to Settings → Taxes and duties and set the tax rate for Turkey.
As prices in Turkey are usually shown including VAT, turn on the prices include tax option.
If you have products subject to different VAT rates, set up tax overrides for the relevant collections.
These settings only affect price and order calculations in your store. Shopify doesn't file or pay taxes on your behalf.
3. Invoicing your sales: e-Invoice and e-Archive
In Turkey, invoices for online sales need to be issued electronically:
e-Invoice (e-Fatura): issued to buyers (companies) registered in the e-Invoice system.
e-Archive invoice (e-Arşiv): issued to buyers not registered in the e-Invoice system, that is, individual customers. For online sales, e-Archive invoices need to include additional fields such as the website address, payment method and shipping company details.
Moving to e-Invoice and e-Archive is mandatory for businesses selling online above a certain gross sales revenue. As the Revenue Administration updates these revenue thresholds periodically, confirm the current amount on the Turkish Revenue Administration's e-document pages or with your financial adviser.
Shopify's own built-in e-invoicing feature is only for sales to the European Union and the United Kingdom and isn't compatible with the Turkish e-Invoice system. In Turkey you need to issue your invoices through a private integrator. There are two common routes:
Through a Shopify app: Shopify apps from Paraşüt, Logo or private integrators can automatically create an invoice for each order and send it to the customer.
Through an ERP or accounting software integration: orders are transferred to your accounting system and the invoice is issued there. We cover the Logo and Mikro integrations in separate articles.
To move to the e-document system, you need a financial seal (for companies) or an e-signature (for sole proprietorships).
4. Tax registration and business structure
You don't need to set up a company to open a Shopify store; no tax certificate is required when you open the store. But to sell regularly, earn income and issue invoices in Turkey, you need to be registered for tax.
Sole proprietorship: simpler to set up and run. A common choice for small-scale starts.
Limited or joint-stock company: better suited to growing businesses and brands planning to sell abroad. Corporate tax and the company structure can offer advantages for tax planning.
Which structure suits you depends on your revenue, ownership structure and growth plans. Make this decision together with a financial adviser.
5. ETBİS registration
Businesses selling online in Turkey must register with the Ministry of Trade's Electronic Commerce Information System (ETBİS). ETBİS registration is a separate obligation from tax registration. We explain the registration process and KVKK obligations in our KVKK and ETBİS compliance guide.
6. Payment provider fees and accounting
As Shopify Payments isn't available in Turkey, local payment providers such as iyzico and PayTR are used. Points to watch for accounting:
Record the invoices the payment provider issues for its commission deductions as expenses.
The extra transaction fee Shopify charges on third-party payment providers appears separately on your Shopify bill.
Reconcile the difference between the sale amount and the amount paid into your account (commissions, refunds, instalment fees) in your accounting records.
We cover payment provider options in our Shopify Payments article.
Frequently asked questions
Why is VAT added to my Shopify bill?
VAT applies to electronic services purchased from abroad in Turkey. Shopify adds VAT to the bills of stores in Turkey that haven't entered a tax number. When you enter your tax number, the bill is issued without VAT and you declare the VAT yourself on VAT return No. 2.
Do I have to set up a company to sell on Shopify?
Not to open a store. But to sell regularly and issue invoices, you need to be registered for tax. A sole proprietorship is also a form of tax registration.
Can Shopify issue e-invoices for Turkey?
No. Shopify's built-in e-invoicing feature is only for EU and UK sales. In Turkey, you need a private integrator app or an accounting software integration for e-Invoice and e-Archive.
What is the VAT rate in Turkey?
The standard VAT rate is 20%. Reduced rates of 10% and 1% apply to some product groups.
Let's set up your store's infrastructure together
Setting up tax settings, e-invoice integration and payment infrastructure correctly before your store opens prevents accounting problems later. If you'd like to plan your Shopify store's setup and integrations together, get in touch through our Shopify store setup page.
