Transit trade is the goods purchase by a company in Turkey from an overseas company, followed by the sale of the goods to another company company without the goods entering to Turkey. In general terms, “transit trade” can be defined as a country’s external trade that passes through the territory of one or more third countries prior to reaching its final destination. The Turkish jurisdiction allows the application of transit trade. Companies who want to do transit trade shall make a transit trade declaration in the customs. In transit trade, since the products do not enter customs territory of Turkey, the company shall not be responsible to pay VAT in Turkey. In addition, because of the fact that goods produced in a third country then delivered to Belarus without entering into Turkey and this trade is not a real export and import action from technical aspect, the company also shall not pay tariff which is obligatory to pay in case of import and export in Turkey.
On the other hand, since the payment will be made at an account in Turkey, and the bills are issued by the company in Turkey, the company in Turkey shall pay an income tax in the amount of 20% in Turkey. Moreover, it should be noted that, if the owner of the company wants to transfer the income of Turkish company to another company in different country, the company may be liable to pay stoppage tax in the amount of 15 %. However, if there is a bilateral agreement between Turkey and the other company this stoppage tax is not going to be paid.