Istanbul has a few high-end designer shopping malls (e.g., Nisantasi, İstinye Park and Zorlu Center) and it is tempting for foreign tourists to buy luxury goods while exploring the city (see image below).
What is the typical VAT refund for foreign travelers in Istanbul?
The standard VAT rate for luxury goods in Turkey is 20%, but you only get a 5-6% VAT refund for luxury goods (e.g., shoes and bags) in Istanbul. This is often the result of significant service fees, commissions, and currency conversion charges deducted by third-party tax-refund agents from the total Turkish VAT.
This is in stark contrast compared to several European countries where foreign travelers get a 12-15% VAT refund for luxury goods.
How long does it take to reach a VAT refund counter at the Istanbul airport?
VAT refunds for goods in checked baggage
You must go to the dedicated VAT refund counters located after the security screening, but BEFORE the passport control (see image below). There is a dedicated line for priority passengers traveling in business class or with Star Alliance Gold status.
VAT refunds for goods in carry-on baggage
These counters are located AFTER the passport control and it is a 2-step process. First step is to get stamped by customs and the second step is to get paid either in cash or credit refund at the next counter.
Customs Office
You will first see the K23-28 VAT refund counters, but before standing in line you must go to the end of the hallway to the customs office (see image below). Keep your goods in the original packing until verified by the customs officer.
VAT Refund Counter
After the receipts are stamped by customs, you must stand in a second line to get paid (see image below).
How early must you arrive at the airport for VAT refunds?
Unless you are flying in premium cabins or have Star Alliance Gold status, I recommend arriving 3-4 hours before your flight departure to get the VAT refunds.
What is the best way to overcome this low VAT refund?
The easiest way to get the full 20% VAT refund is to shop inside Istanbul International Airport’s tax-free area after you clear border control. IST airport has one of the best designed boutique shopping areas in the world with several high-end designer stores including Louis Vuitton, Hermes, Bvlgari, Celine, Fendi, and Gucci. While the airport’s designer stores may not stock all the latest models, you will still find several eye-catching designs.
The price you see here will be at least 20% less than the retail price and you won’t have to deal with long lines at the VAR refund counters for the 5% refund if you choose to make the purchase inside the city.