KDV and MwSt: Tax Compliance for Turkey-Germany Food Trade

Food trade between Turkey and Germany is a significant market, driven by diaspora demand and growing cross-border supply chains. But managing two different tax systems — Turkish KDV and German MwSt — creates real complexity for distributors operating in both countries.

In Turkey, the standard KDV (Katma Deger Vergisi) rate is 20%, with a reduced rate of 10% for basic food items. In Germany, the standard MwSt (Mehrwertsteuer) rate is 19%, with a reduced rate of 7% for most food products. These different rates must be correctly applied based on the destination of goods and the tax residency of the buyer.

For food distributors operating in both markets, the key challenges include: maintaining separate invoice numbering sequences per country, applying correct tax rates automatically, generating invoices in the appropriate language and format, and ensuring compliance with both Turkish tax authority requirements and German GoBD standards.

Double taxation can be avoided through proper understanding of VAT exemptions for cross-border B2B transactions within applicable trade agreements. However, the documentation requirements are strict — every cross-border transaction needs proper proof of export, buyer verification, and correct invoice formatting.

LuniOps handles both tax systems in one platform. When you create an invoice, the system automatically applies the correct tax rates based on your company's region configuration — KDV rates for Turkish operations, MwSt rates for German operations. Invoice templates, numbering, and language all adapt accordingly.

For the many Turkish-German food businesses operating across both markets, having a single platform that speaks both languages and handles both tax systems eliminates the need for separate tools — reducing errors, saving time, and ensuring compliance on both sides.