VAT Rates Applied According to Taxpayer Registry and Activity Codes on Invoices Issued from 1 April 2026

VAT Rates Applied According to Taxpayer Registry and Activity Codes on Invoices Issued from 1 April 2026

In an announcement published on 16.03.2026, the Revenue Administration (GİB) stated that registry and activity code checks for documents issued through private integrator systems will become mandatory as of 1 April 2026.

Accordingly, updates have been made to the e-Invoice Package, the UBL-TR (Code Lists) Guide and the UBL-TR 1.2.1 package, and these will go live on 1 April 2026. The regulation introduces the code "555-Sales Not Subject to VAT Rate Control", which may be selected in cases where an invoice cannot be issued with the VAT rate corresponding to the activity code, such as recharge invoices and fixed asset sales invoices.

Within the scope of the arrangements made by the Revenue Administration,

the necessary checks against registry and activity code records for documents issued through private integrator systems will begin as of 1 April 2026. From that date onwards, the system will check whether the VAT rates applied on invoices and similar documents are consistent with the taxpayer's registry and activity (NACE) codes as recorded by the tax office, and it will not be possible to use VAT rates that are inconsistent with the activity code. Taxpayers must therefore ensure that the VAT rate applied on invoices issued through a private integrator system is the VAT rate compatible with their activity code.

• For example, a business that is entitled to make sales at a VAT rate of 1% because it operates in the food sector (NACE code) will no longer be able to make sales at 20% in respect of construction activity after that date. To do so, the activity code for the sale of construction materials must also be entered into its tax office registry records.
• Return invoices and invoices subject to withholding/refund transactions will be excluded from these rate checks.
• In cases where it is mandatory to use a VAT rate other than the rates determined by the NACE code (such as recharge invoices and fixed asset sales invoices), invoices may be issued by selecting the code "555-Sales Not Subject to VAT Rate Control".

We would strongly remind taxpayers that, in order to avoid difficulties with VAT rates on invoices and similar documents they issue from 1/4/2026 onwards, they must update the activity (NACE) codes in their tax office records by the end of March.