The short answer
You don’t need to form a company just to open a shop. What matters is how you earn: what you sell, where it’s made, how often you sell and how much. Turkey’s esnaf exemption can cover some home producers who sell online, but it isn’t a general tax threshold for every Etsy seller.
Two different exemptions, two different limits
| GVK 9/1-10 | GVK 9/1-6 | |
|---|---|---|
| 2026 limit | 1,900,000 TL annual revenue | Annual gross minimum wage for online sales: 396,360 TL (33,030 TL × 12) |
| Who | Home production, sold only through the internet or similar electronic channels | Home handicrafts listed in the law, with other conditions |
| Bank rule | Commercial bank account in Turkey and revenue collected through it | Different rules, the bank withholding regime of 9/10 doesn’t carry over |
| Source | GİB infographic and communiqué | GİB esnaf exemption guide and 2026 wage notice |
You can’t use both exemptions in the same calendar year. Don’t copy the 2025 limit of 312,066 TL for the second one: the 2026 figure is 396,360 TL.
What 9/1-10 requires
- You make the goods at home, with no separate workplace and no industrial or serial production machinery.
- You hold an Esnaf Vergi Muafiyeti Belgesi.
- You have a commercial bank account in Turkey and receive the revenue through it.
- You sell only online or through similar electronic channels.
“Exempt” doesn’t mean no tax at all. The bank generally withholds 4% income tax on money transferred to that account. The rate is 2% if you employ at least one worker for at least 10 days in that month.
What the limit actually measures
- 1,900,000 TL is revenue, not profit. All products count together.
- If you exceed it, you keep the exemption for that year, and it ends from the start of the next year.
- Breaking other conditions can have different consequences.
What the exemption doesn’t automatically cover
The exemption follows the law’s wording about goods made at home. Reselling ready-made products, products printed and shipped by an outside supplier (print on demand) and downloadable digital files don’t automatically fall under it. Whether your actual activity qualifies is a question for your tax office or accountant.
VAT, Etsy fees and your Etsy VAT ID
Turkey’s general VAT rate is 20%, but that doesn’t mean every Etsy product is taxed at 20%. Etsy charges VAT on its own seller fees if you haven’t entered a VAT ID, and the monthly VAT invoice is available from your Payment account on the first day of the next month. If you add a valid VAT ID, Etsy doesn’t collect fee VAT.
Don’t enter a number just to reduce fees. Etsy not collecting VAT doesn’t end your obligations in Turkey. Services bought from abroad and used in Turkey can bring reverse-charge VAT, so ask your accountant before you add a VAT ID. You can see how VAT lines look on a real order in our Etsy fees guide.
When a sole proprietorship makes sense
- You buy and resell instead of producing at home.
- You sell digital files or use print on demand.
- Your revenue is close to the limit.
- You need e-invoices or other formal paperwork.
What to do next
- Write down what you sell, where it’s made and your expected annual revenue.
- Check the current GİB guidance for your category, and keep this page’s limits only as a starting point.
- Ask a licensed accountant before you apply for the exemption certificate or add a VAT ID.
- Open the shop, then work toward your first sale.
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Rules, numbers and dates change often. This page reflects the sources below as checked on Nov 9, 2026. Confirm current figures with the official source before you act.