E-Commerce Tax Obligations for Foreign Dropshipping Companies in Turkey

E-Commerce Tax Rules for Foreign Dropshipping Companies in Turkey

Foreign companies engaging in dropshipping activities targeting Turkish consumers are increasingly facing direct tax and compliance obligations—even without having a physical presence in Turkey. With the rapid growth of cross-border e-commerce, Turkish tax authorities have tightened regulations on digital sales, platform-based trade, and foreign business models operating remotely. If your foreign company sells products to customers in Turkey via platforms such as Trendyol, Amazon, Etsy, or Shopify, you may be subject to Value Added Tax (VAT), digital services tax, and e-invoice obligations, depending on your transaction volume and technical integration with Turkish payment systems.

This guide, prepared by the digital commerce legal team of ER&GUN&ER Law Firm, explains the key tax and legal obligations foreign dropshipping companies must comply with when operating in Turkey. As English speaking Turkish lawyers with extensive experience in e-commerce structuring, we provide practical and legal insight into tax registration, VAT thresholds, remote seller audits, and integration with Turkish e-invoicing infrastructure. Whether you operate through a local logistics partner or sell purely from abroad, understanding your fiscal exposure is critical to avoid administrative penalties and revenue seizures by Turkish tax authorities.

When Is a Foreign Dropshipping Company Liable for Turkish Taxes?

According to Turkish tax law and recent guidance by the Revenue Administration (Gelir İdaresi Başkanlığı), foreign entities engaging in regular, continuous, and measurable e-commerce activities in Turkey may become liable for indirect taxes, even if they do not have a registered legal entity inside the country. The key factors include:

  • Volume and frequency of transactions delivered to Turkey
  • Use of Turkish payment gateways or bank integrations
  • Language and currency used on the website (e.g., Turkish + TRY)
  • Use of Turkish domain names (e.g., .com.tr)
  • Use of local logistics or last-mile fulfillment services

Even without permanent establishment (PE), the above factors may create a “digital presence” deemed sufficient for taxation. A Turkish Law Firm can analyze your sales infrastructure and provide a detailed tax nexus assessment. Dropshipping models are particularly vulnerable because most transactions are B2C, involve local delivery, and often bypass customs via small parcel declarations—factors that increase regulatory scrutiny.

Value Added Tax (VAT) Rules for Foreign E-Commerce Sellers

VAT in Turkey is currently levied at a standard rate of 20%. For dropshipping companies, the obligation to collect and remit VAT arises when the seller is considered to be the “liable party” under Turkish legislation. Since 2021, foreign service providers and digital commerce platforms that reach Turkish customers may be required to register for VAT and submit monthly returns—even if they operate without a Turkish entity. This includes:

  • Selling goods directly to Turkish consumers via online platforms
  • Processing payments in Turkish Lira or through Turkish banks
  • Providing digital interfaces facilitating local sales (e.g., Shopify storefronts configured for Turkey)

Foreign companies falling under this scope must apply for a non-resident VAT number (VD) and designate a tax representative in Turkey. Failure to register and file monthly returns can result in fines, collection procedures, and even payment platform bans.

E-Invoice (E-Fatura) and Digital Integration Requirements

One of the most overlooked obligations for foreign e-commerce sellers in Turkey is the requirement to integrate with Turkey’s e-invoice system. E-Fatura is a digital invoicing infrastructure regulated by the Turkish Revenue Administration and mandatory for all taxpayers exceeding certain turnover thresholds. Even foreign companies operating without a branch in Turkey may be required to issue e-invoices through a registered Turkish intermediary or technology integrator. This includes foreign-owned Shopify stores and Amazon sellers who handle logistics or returns locally.

Our firm regularly registers foreign companies into the e-Fatura system via local accounting partners, obtains e-signature infrastructure, and connects e-commerce interfaces with the Turkish system. This is particularly important for companies exceeding TRY 500,000 in annual turnover from Turkish customers. If your operations cross this threshold, you must issue e-invoices, maintain digital archives, and comply with XML-based audit procedures under Turkish Tax Procedure Law.

Platform Responsibility: When Marketplaces Must Withhold Tax

Under Turkish digital marketplace legislation, platforms such as Trendyol, Hepsiburada, and Amazon Turkey may be required to withhold taxes or report foreign sellers to the tax authority. If your foreign company uses Turkish marketplaces as a third-party seller, the platform may deduct VAT or other taxes from your payouts unless you are registered and compliant. Moreover, platforms must notify the Turkish Revenue Administration of non-compliant sellers, potentially resulting in account restrictions or enforcement actions.

To avoid disruptions, foreign dropshipping companies must register their tax ID, provide digital compliance documentation, and submit periodic transaction reports. Platforms are also required to retain seller information for inspection. A best lawyer in Turkey will ensure your dropshipping model meets both marketplace policies and fiscal reporting obligations.

MASAK and Anti-Money Laundering Compliance

Foreign companies processing payments via Turkish banks or local gateways must also comply with anti-money laundering (AML) and counter-terrorism financing regulations under MASAK (Financial Crimes Investigation Board). Payment flows from Turkish customers are monitored, and unregistered entities with high-volume transaction flows may trigger red flags. In some cases, account suspensions or requests for beneficial owner disclosures may occur.

To stay compliant, companies must disclose their legal ownership structure, comply with banking transparency requests, and respond to audits. Our firm helps foreign clients establish a clear audit trail, including tax representative agreements and AML declarations. Particularly for EU-based sellers under pressure from multiple jurisdictions, harmonized documentation and compliance consistency are key.

Appointing a Tax Representative in Turkey

Non-resident companies subject to Turkish tax obligations must appoint a local tax representative (“vergi temsilcisi”). This person or firm will act as your official tax contact in Turkey, file returns, and receive correspondence from the Revenue Administration. The representative must be a Turkish citizen or entity, and their appointment must be notarized and registered. Without this representative, most applications—especially for VAT registration or e-Fatura access—will be rejected.

We provide full-service tax representative agreements, working with registered Turkish CPAs who coordinate with our legal team to ensure integrated service. This structure ensures full compliance and reduces communication gaps between tax authorities, logistics providers, and legal counsel.

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Conclusion: Tax Compliance is Essential for Cross-Border E-Commerce

Turkey is rapidly evolving into a highly regulated jurisdiction for cross-border digital trade. Foreign dropshipping companies that serve Turkish customers—whether through platforms or direct websites—must not assume immunity from local tax obligations. From VAT collection and e-Fatura issuance to MASAK reporting and tax representation, every element must be carefully reviewed and strategically implemented. A single missing registration or invoice failure can lead to platform bans, audits, and costly financial penalties.

At ER&GUN&ER Law Firm, our experienced English speaking Turkish lawyers and tax compliance team help foreign e-commerce businesses legally enter and operate in the Turkish digital economy. We handle tax registrations, structure representation contracts, manage e-Fatura setup, and ensure your dropshipping model is legally bulletproof. Don’t wait for a warning notice from a platform or tax authority—start with proactive legal protection.