What Is an Exemption Invoice? Full List of Exemption Codes (2026)

Q: 4. How Is an Exemption Invoice Issued?

An exemption invoice is issued through accounting software using the e-invoice or e-archive system. The appropriate exemption code for the relevant product or service is selected and added to the invoice details.

As you navigate the e-commerce world, the terms and procedures you come across can sometimes be confusing. “Exemption invoice” is one of these terms and expresses an important concept. An exemption invoice is a special type of invoice issued for transactions on which VAT (Value Added Tax) is not applied under certain circumstances and conditions. This matters to both businesses and end users, because knowing about tax liabilities and exemptions makes financial transactions more efficient and compliant with the law.

In this blog post, we will cover in detail what exemption invoices are and when and why they are used. We will also present the full list of exemption codes, explaining what each code means and which situations it suits. Our aim is to look beneath the seemingly complicated surface of this topic and explain it in plain, simple language that everyone can understand. Addressing a broad audience, from business owners operating in e-commerce to individuals directly involved in these processes, this content aims to present all the essential information about exemption invoices comprehensively.

What Is an Exemption Invoice?

In the world of e-commerce, businesses and accountants often come across the term “exemption invoice”. So what is an exemption invoice, and when is it used? The answer is closely tied to tax legislation and VAT (Value Added Tax) practice. An exemption invoice is a special type of invoice for the sale of certain goods or services on which VAT is not applied. This applies to situations defined by law, and VAT is neither calculated nor collected on sales of these goods or services.

These invoices are generally issued for the sale of certain goods and services that tax legislation defines as exempt from VAT. Certain education and healthcare services, export transactions, or other legally defined exemptions are examples. Issuing an exemption invoice requires both accountants and business owners to be sufficiently informed on the subject. Otherwise, invoices may mistakenly be issued with VAT applied, or situations that call for a VAT-free invoice may be misunderstood.

Correct use of an exemption invoice helps businesses meet their tax obligations properly and offers tax advantages to both seller and buyer. These invoices can be issued easily in accounting software by setting the VAT rate to “0” for the relevant product or service and selecting the appropriate exemption code. In this way, invoices issued for exceptional cases ensure compliance with tax legislation and the accuracy of financial transactions.

In short, an exemption invoice is a type of invoice issued for special cases in which VAT is not applied under certain conditions. It is a requirement of tax legislation and, with accurate knowledge and practice, an important financial and legal tool for businesses. Issuing exemption invoices correctly plays a critical role in businesses meeting their tax obligations, which is why being well informed on the subject matters greatly.

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Why Is an Exemption Invoice Issued?

Although it may seem somewhat complicated, an exemption invoice is in fact a practice that makes life easier for businesses. So why is an exemption invoice issued? Once we look into it, we see there are quite logical reasons. Especially where VAT (Value Added Tax) exemption is involved, the importance of these invoices grows even more.

Exports and VAT Exemption

The most common reason is export transactions. When goods are sold abroad, no VAT is charged on these sales under the Value Added Tax Law. In other words, if a producer or business sells its product to another country, VAT is not applied to that sale. In this case, producers issue VAT-free invoices. The key point here is that VAT is set to zero for exported goods.

VAT Refund

Businesses that export can apply to have the uncollected VAT amount refunded by the state. Thanks to this system, exporters can sell their products abroad without taking on a tax burden. This is an important practice that encourages our country's exports.

Exemption Codes and Invoice Layout

The VAT amount is mandatory information on invoices. However, for VAT-free sales, entering an exemption code on the invoice turns it into an exemption invoice. In other words, if no VAT is to be applied, this is stated on the invoice and the appropriate exemption code is used.

Scope of the Exemption Invoice

The exemption invoice is not limited to export transactions. VAT-free sales are possible in many different situations. For example:

Sales made under investments and incentives,
Transportation services,
Diplomatic exemptions,
Certain imported goods,
Sales made for social and military purposes.

This variety shows how important a role exemption invoices play in different sectors and situations.

Conclusion

The exemption invoice is an important provision in our tax legislation. It provides VAT exemption in certain cases, above all for exports. This both increases businesses' competitiveness and encourages sales abroad. Knowing the situations in which VAT-free sales are possible, and how to issue invoices for them, is very important for businesses. The exemption invoice is the key tool that ensures this process runs correctly.

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How Is an Exemption Invoice Issued?

In e-commerce and business, the question "how do you issue an exempt invoice?" matters a great deal, especially for accountants and business owners who want to comply with tax legislation. An exempt invoice is a special type of invoice issued for sales on which VAT (Value Added Tax) is not applied in certain cases. Carrying out this process correctly ensures both compliance with the legislation and the accuracy of financial transactions. Here is the exempt invoicing process step by step:

Step 1: Open the e-Invoice or e-Archive Screen

First, open the e-invoice or e-archive screen in the accounting software used to issue invoices. This is required to prepare and send the invoice electronically.

Step 2: Select the Invoice Type

Once the relevant screen is open, select "exemption" (istisna) as the invoice type. This indicates that the product or service involved in the transaction is exempt from VAT.

Step 3: Determine the Exemption Code

Find the code that matches the exemption the transaction is based on, and state it on the invoice. Each exemption code corresponds to an exemption article in the law; the code is selected according to the type of transaction carried out, not the product (for example, 301 for the export of goods).

Step 4: Issuing a VAT-Free Invoice for Multiple Products

If the products on the invoice are based on different exemptions, the exemption code is entered separately for each line. The "350 – Others" code is used for exemptions that have no equivalent in the list; it is not used to combine different codes into a single code.

Step 5: Cases That Are Not Exemptions

For cases where VAT is not calculated on a line even though it does not fall under an exemption, the "351 – Other Non-Exempt" code is used with the invoice type set to Sale. This is a situation that is rarely encountered.

Step 6: Fill in the Description Section

When issuing an exempt invoice, you may sometimes see the warning "The exempt invoice description cannot be left blank." In this case, the exemption code of the product invoiced and a detailed description must be added to the invoice description and to the VAT exemption reason field.

Step 7: Send the Invoice

The issued exempt invoice is transmitted electronically to the recipient and to the Revenue Administration (GİB) through the e-Invoice or e-Archive system. This is what makes the invoice legally valid.

Issuing exempt invoices is important for recording VAT-exempt transactions in line with tax legislation. This process may seem complicated, especially for beginners, but by following the steps above you can issue exempt invoices correctly and in compliance with the law.

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Complete List of Exemption Codes

Exemption codes are codes used on e-Invoice and e-Archive invoices to show the basis of transactions on which VAT or SCT is not applied, on which withholding is applied, or which are calculated on a special base. The single list below contains all 145 codes: VAT exemption, export-registered sales, special base, SCT exemption and withholding codes. Type a code number (e.g. 301) or a word from the description (e.g. export, meal, scrap) in the search box to find the code you need right away, and tap a code to copy it. The "Invoice type" column shows which invoice type the code is used with.

Showing 145 codes

VAT Exemption Codes 71 codes

VAT exemption codes used on exempt invoices and on returns of these invoices. The label at the start of the description is the basis of the exemption in the VAT Law (e.g. 11/1-a, Temporary 20/1). The exemption rate for these codes is 100%.

Code	Description	Invoice type
	17/1 Transactions of a Cultural and Educational Nature	ExemptionReturn
	17/2-a Transactions for Health, Environmental and Social Aid Purposes	ExemptionReturn
	17/2-c Purchases of Goods and Services by Foreign Diplomatic Bodies and Charities Related to Donations They Make	ExemptionReturn
	17/2-d Deliveries Relating to Immovable Cultural Assets and Architectural Services	ExemptionReturn
	17/2-e Transactions of Professional Bodies	ExemptionReturn
	17/3 Transactions of Military Factories, Shipyards and Workshops	ExemptionReturn
	17/4-c Merger, Transfer, Conversion and Demerger Transactions	ExemptionReturn
	17/4-e Transactions Subject to Banking and Insurance Transactions Tax	ExemptionReturn
	17/4-h Deliveries of Water for Agricultural Purposes and Drinking Water Deliveries by Village Legal Entities	ExemptionReturn
	17/4-ı Services Provided in Free Zones	ExemptionReturn
	17/4-j Oil and Gas Transportation by Pipeline	ExemptionReturn
	17/4-k Deliveries of Land and Business Premises in Organized Industrial Zones and Deliveries of Housing to Members of Housing Construction Cooperatives	ExemptionReturn
	17/4-l Transactions of Asset Management Companies	ExemptionReturn
	17/4-m Transactions of the Savings Deposit Insurance Fund	ExemptionReturn
	17/4-n News Services Provided to the General Directorate of Press and Information	ExemptionReturn
	17/4-o Services Related to Customs Warehouses, Temporary Storage Places, Customs Areas and Duty-Free Stores	ExemptionReturn
	17/4-p Transactions of the General Directorate of the Treasury and Land Office	ExemptionReturn
	17/4-r Sales of Real Estate and Participation Shares Held for Two Full Years	ExemptionReturn
	Geçici 15 Construction Contracting Services Provided to Housing Construction Cooperatives, Municipalities and Social Security Institutions	ExemptionReturn
	Geçici 20/1 Transactions in Technology Development Zones	ExemptionReturn
	Geçici 23 Deliveries Related to Computer Donations to the Ministry of National Education	ExemptionReturn
	17/2-b Free Education and Training Services Provided by Private Schools, Universities and Colleges	ExemptionReturn
	17/2-b Free Deliveries and Services Made as Required by Laws	ExemptionReturn
	17/2-b Free Deliveries to the Institutions and Organizations Listed in Article (17/1) of the Law	ExemptionReturn
	17/2-b Food, Cleaning, Clothing and Fuel Items Donated to Associations and Foundations Engaged in Food Banking	ExemptionReturn
	17/4-g Delivery of Gold Bullion, Silver Bullion and Precious Stones	ExemptionReturn
	17/4-g Delivery of Metal, Plastic, Rubber, Paper and Glass Scrap and Waste	ExemptionReturn
	17/4-g Deliveries of Foreign Currency, Money, Stamps, Securities, Shares and Bonds	ExemptionReturn
	17/4-ş Delivery of Homes Pledged as Collateral and Mortgaged for Housing Finance	ExemptionReturn
	16/1-c Delivery of Goods Subject to Transit and Customs Warehouse Regimes and to Temporary Storage and Free Zone Provisions	ExemptionReturn
	19/2 Exemptions Under Duly Ratified International Agreements (No Right of Refund)	ExemptionReturn
	17/4-t Deliveries Following the First Delivery of Commodity Notes Issued Under Law No. 5300 Through Specialized/Commodity Exchanges	ExemptionReturn
	17/4-u Transfer of Assets to Asset Leasing Companies, Leasing of These Assets by Asset Leasing Companies and Their Transfer to the Assuming Institution	ExemptionReturn
	17/4-y Transfer of Real Estate to Financial Leasing Companies, Leasing Back to the Transferor by the Financial Leasing Company, and Transfer	ExemptionReturn
	17/4-z Leasing, Transfer and Sale of Intangible Rights Relating to Inventions with a Patent or Utility Model Certificate	ExemptionReturn
	17/4-ö Warehousing, Storage and Terminal Services Provided in Customs Warehouses, Temporary Storage Places and Customs Areas for Goods Subject to Import and Export Transactions and for Goods Handled Under the Transit Regime	ExemptionReturn
	Others	ExemptionReturn
	11/1-a Export of Goods	ExemptionReturn
	11/1-a Export of Services	ExemptionReturn
	11/1-a Roaming Services	ExemptionReturn
	13/a Delivery of Sea, Air and Rail Transport Vehicles and Their Construction, Modification, Maintenance and Repair	ExemptionReturn
	13/b Services Provided at Ports and Airports for Sea and Air Transport Vehicles	ExemptionReturn
	13/c Deliveries and Services Related to Petroleum Exploration and the Construction and Modernization of Petroleum Pipelines	ExemptionReturn
	13/c Deliveries and Services Related to Mining Exploration and the Operation, Enrichment and Refining of Gold, Silver and Platinum Mines [KDVGUT-(II/8-4)]	ExemptionReturn
	13/d Delivery of Incentivized Investment Goods	ExemptionReturn
	13/e Construction, Renovation and Expansion of Ports and Airports	ExemptionReturn
	13/f Deliveries and Services for National Security Purposes	ExemptionReturn
	14/1 International Transportation	ExemptionReturn
	15/a Deliveries and Services to Diplomatic Bodies and Missions	ExemptionReturn
	15/b Deliveries and Services to International Organizations	ExemptionReturn
	19/2 Exemptions Under Duly Ratified International Agreements	ExemptionReturn
	14/3 Diesel Fuel Deliveries to Trucks, Tractor Units and Semi-Trailers Carrying Goods for Export	ExemptionReturn
	11/1-a Subcontracting Services for Customers in Free Zones	ExemptionReturn
	17/4-s Equipment and Computer Programs Related to the Education, Professions and Daily Lives of Disabled People	ExemptionReturn
	Geçici 29 Deliveries and Services Related to Projects Carried Out Under the Build-Operate-Transfer Model Under Law No. 3996, Health Facility Projects Built in Exchange for Lease Under Law No. 3359, and Education Facility Projects Built in Exchange for Lease Under Decree-Law No. 652	ExemptionReturn
	13/g Vehicle Deliveries to the Prime Ministry Central Organization	ExemptionReturn
	Geçici 16 (6111 sayılı K.) Deliveries and Services to the "Istanbul Project Coordination Unit" Operating Under the Istanbul Special Provincial Administration Within the Scope of ISMEP	ExemptionReturn
	Geçici 26 Deliveries of Goods and Performance of Services for the Official Use of the United Nations (UN) and North Atlantic Treaty Organization (NATO) Representations and Their Affiliated Programs, Funds and Specialized Agencies, and of the Organisation for Economic Co-operation and Development (OECD), and Deliveries of Goods and Services Made to Them in Connection with Goods and Services They Provide Free of Charge for Social and Economic Aid Purposes	ExemptionReturn
	11/1-a Deliveries Made with a Special Invoice to Non-Residents of Türkiye (Suitcase Trade)	ExemptionReturn
	13/ğ First Delivery of Commodity Notes Issued Under Law No. 5300 Through Specialized/Commodity Exchanges	ExemptionReturn
	13/h Deliveries and Services to the Turkish Red Crescent Society and Deliveries and Services of the Turkish Red Crescent Society	ExemptionReturn
	13/ı Feed Deliveries	ExemptionReturn
	13/ı Delivery of Fertilizers Registered by the Ministry of Agriculture and Forestry	ExemptionReturn
	13/ı Delivery to Fertilizer Producers of Raw Materials Contained in Fertilizers Registered by the Ministry of Agriculture and Forestry	ExemptionReturn
	13/m Exemption for Deliveries of New Machinery and Equipment to Be Used in R&D, Innovation and Design Activities	ExemptionReturn
	Geçici 39 Exemption for Deliveries of New Machinery and Equipment to Be Used in Manufacturing Industry	ExemptionReturn
	Deliveries of Printed Books and Periodicals	ExemptionReturn
	Export of Goods by Manufacturers	ExemptionReturn
	Deliveries and Services Related to Construction Work Covered by an Investment Incentive Certificate for Manufacturing Industry and Tourism	Exemption
	Others	ExemptionReturn
	VAT – Other Non-Exempt	SaleReturn

Export-Registered Sales Codes 2 codes

VAT codes used for deliveries made on an export-registered basis. The exemption rate is 100%.

Code	Description	Invoice type
	Export-Registered Sale Under Article 11/1-c of VAT Law No. 3065	ReturnExport-Registered
	Sales Under the Inward Processing Regime (DİİB) and Temporary Admission Regime	ReturnExport-Registered

Special Base Codes 10 codes

Codes for transactions on which VAT is calculated on a special base.

Code	Description	Invoice type
	Shows and concerts featuring professional artists, and sporting activities, matches and races featuring professional athletes, and competitions	Special BaseReturn
	Sales made in customs warehouses and auction halls	Special BaseReturn
	Delivery and import of jewelry made of gold or containing gold, and gold coins	Special BaseReturn
	Tobacco products and certain alcoholic beverages	Special BaseReturn
	Newspapers, magazines and similar periodical publications	Special BaseReturn
	Deliveries of silver bullion and articles made of silver	Special BaseReturn
	Sale by dealers of tickets and cards used in city passenger transport operated by municipalities	Special BaseReturn
	Sales of phone cards and tokens	Special BaseReturn
	Printing of vehicle license plates and certain documents used in driving schools by the Turkish Federation of Drivers and Automobile Owners	Special BaseReturn
	Delivery of second-hand motor land vehicles or real estate, purchased without any substantial change in their nature from persons who are not VAT payers (including purchases made under an exemption from VAT payers), by taxpayers engaged in second-hand motor land vehicle or real estate trade	Special BaseReturn

SCT Exemption Codes 10 codes

Codes used for special consumption tax (SCT) exemptions and export-registered SCT sales. The exemption rate is 100%.

Code	Description	Invoice type
	Export Exemption	ExemptionReturn
	Diplomatic Exemption	ExemptionReturn
	Military Purpose Exemption	ExemptionReturn
	Deliveries to Those Engaged in Petroleum Exploration Activities	ExemptionReturn
	Exemption Arising from an International Agreement	ExemptionReturn
	Other Exemptions	ExemptionReturn
	7/a Deliveries Made Under the Article	ExemptionReturn
	Deliveries Made Under Temporary Article 5	ExemptionReturn
	SCT – Other Non-Exempt	SaleReturn
	Export-Registered Sale Under Article 8/2 of SCT Law No. 4760	ReturnExport-Registered

Withholding Codes 52 codes

Codes for transactions to which VAT withholding applies. The 6xx codes are partial withholding and the 8xx codes are full (10/10) withholding; the rate column shows the share of VAT paid by the buyer.

Description	Invoice type	Rate
Engineering-Architecture and Survey-Project Services Performed Together with Construction Works	Withholding	4/10
Survey, Planning-Project, Consulting, Audit and Similar Services	Withholding	9/10
Modification, Maintenance and Repair Services for Machinery, Equipment, Fixtures and Vehicles	Withholding	7/10
Catering Service	Withholding	5/10
Organization Service	Withholding	5/10
Labor Supply Services	Withholding	9/10
Private Security Service	Withholding	9/10
Building Inspection Services	Withholding	9/10
Subcontracted Textile and Garment Work, Bag and Shoe Sewing Work, and Intermediary Services for These Works	Withholding	7/10
Customer Finding/Delivery Services Provided to Tourist Shops	Withholding	9/10
Transactions Relating to Sports Clubs' Broadcasting, Advertising and Naming Rights Income	Withholding	9/10
Cleaning Service	Withholding	9/10
Environmental and Garden Maintenance Services	Withholding	9/10
Shuttle Transportation Service	Withholding	5/10
All Kinds of Printing Services	Withholding	7/10
Other Services	Withholding	5/10
Ingot Deliveries Obtained from Scrap Metal	Withholding	7/10
Delivery of Copper, Zinc, Iron-Steel, Aluminum and Lead Ingots Other Than Those Obtained from Scrap Metal	Withholding	7/10
Delivery of Copper, Zinc and Aluminum Products	Withholding	7/10
Delivery of Scrap and Waste by Those Who Waived the Exemption	Withholding	7/10
Delivery of Raw Materials Obtained from Metal, Plastic, Rubber, Paper and Glass Scrap and Waste	Withholding	9/10
Deliveries of Cotton, Mohair, Wool and Wool Waste, and Raw Hides and Skins	Withholding	9/10
Delivery of Wood and Forest Products	Withholding	5/10
Freight Transport Service	Withholding	2/10
Commercial Advertising Services	Withholding	3/10
Other Deliveries	Withholding	2/10
Delivery of Iron and Steel Products	Withholding	4/10
Engineering-Architecture and Survey-Project Services Performed Together with Construction Works	Withholding	10/10
Survey, Planning-Project, Consulting, Audit and Similar Services	Withholding	10/10
Modification, Maintenance and Repair Services for Machinery, Equipment, Fixtures and Vehicles	Withholding	10/10
Catering Service	Withholding	10/10
Organization Service	Withholding	10/10
Labor Supply Services	Withholding	10/10
Private Security Service	Withholding	10/10
Building Inspection Services	Withholding	10/10
Subcontracted Textile and Garment Work, Bag and Shoe Sewing Work, and Intermediary Services for These Works	Withholding	10/10
Customer Finding/Delivery Services Provided to Tourist Shops	Withholding	10/10
Transactions Relating to Sports Clubs' Broadcasting, Advertising and Naming Rights Income	Withholding	10/10
Cleaning Service	Withholding	10/10
Environmental and Garden Maintenance Services	Withholding	10/10
Shuttle Transportation Service	Withholding	10/10
All Kinds of Printing Services	Withholding	10/10
Ingot Deliveries Obtained from Scrap Metal	Withholding	10/10
Delivery of Copper, Zinc, Iron-Steel, Aluminum and Lead Ingots Other Than Those Obtained from Scrap Metal	Withholding	10/10
Delivery of Copper, Zinc, Aluminum and Lead Products	Withholding	10/10
Delivery of Scrap and Waste by Those Who Waived the Exemption	Withholding	10/10
Delivery of Raw Materials Obtained from Metal, Plastic, Rubber, Paper and Glass Scrap and Waste	Withholding	10/10
Deliveries of Cotton, Mohair, Wool and Wool Waste, and Raw Hides and Skins	Withholding	10/10
Delivery of Wood and Forest Products	Withholding	10/10
Freight Transport Service	Withholding	10/10
Commercial Advertising Services	Withholding	10/10
Delivery of Iron and Steel Products	Withholding	10/10

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Exemption invoices and the exemption codes used on them play a key role in VAT exemption practices. This guide aims to give accountants and business owners the information they need to issue invoices in line with tax legislation. Understanding and applying exemption invoices correctly both ensures that tax obligations are fulfilled properly and keeps your financial transactions transparent and orderly.

We hope this information contributes valuable insight to your business's tax planning and accounting processes. With the full list of exemption codes, you can manage your transactions with ease and make the most of VAT exemptions.

Frequently Asked Questions (FAQ)

1. What Is an Exemption Invoice?

An exemption invoice is a special type of invoice issued for the sale of certain goods or services on which Value Added Tax (VAT) is not applied. These invoices are issued for situations defined by tax legislation and provide VAT exemption.

2. What Are Exemption Codes?

Exemption codes are special codes used to classify goods or services that are exempt from VAT. Each code represents a specific type of exemption and helps accountants issue exemption invoices correctly.

3. When Is an Exemption Invoice Issued?

Exemption invoices are issued when selling goods or services that are exempt from VAT, such as export transactions, certain education and healthcare services, and investments with an incentive certificate.

4. How Is an Exemption Invoice Issued?

Exemption invoices are issued through accounting software using the e-Invoice or e-Archive system. The appropriate exemption code for the product or service is selected and added to the invoice details.

5. What Are the Advantages of an Exemption Invoice?

Exemption invoices allow businesses to manage their tax obligations correctly. VAT exemption gives businesses financial advantages and encourages sales abroad.

6. What Information Does an Exemption Invoice Contain?

An exemption invoice contains the basic invoice information, such as the details of the product or service sold, the exemption code, and the buyer and seller information. It also includes a statement indicating that the VAT is zero.

7. Where Can Exemption Codes Be Found?

Exemption codes can be found on the official website of the Revenue Administration (GİB) and in the up-to-date lists of accounting software. These codes are updated regularly and renewed in line with legislative changes.

What Is an Exemption Invoice? Full List of Exemption Codes

What Is an Exemption Invoice?

Why Is an Exemption Invoice Issued?

Exports and VAT Exemption

VAT Refund

Exemption Codes and Invoice Layout

Scope of the Exemption Invoice

How Is an Exemption Invoice Issued?

Complete List of Exemption Codes

VAT Exemption Codes 71 codes

Export-Registered Sales Codes 2 codes

Special Base Codes 10 codes

SCT Exemption Codes 10 codes

Withholding Codes 52 codes

Frequently Asked Questions (FAQ)

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