Transit Trade
It is buying a product from another country and selling it to another country (free zones) without bringing it into our own country's customs area. Goods subject to transit trade are not subject to any customs taxes or duties. If we bring the goods we purchase to our country, unload them into bonded warehouses and sell them to another country, we need to prepare a warehouse declaration. In this trade, the company in the country where we bought the goods must invoice us, and we must invoice our customers in the country where we sold the goods. The invoice we issue to our customers must be in English and without adding VAT. In our country, it is essential to issue an invoice for the purpose of taxing our earnings. It is essential that the Turkish invoice to be issued is VAT-free. (based on export VAT exemption)
Transit trade, (Transit trade carried out without being brought to the Turkish customs area): It is a form of trade and is not subject to export and import regimes in accordance with our national legislation. Therefore, no customs declaration is issued. This form of trade is subject to tax, duty and duty exemption. All payment methods applied in import and export can also be applied in transit trade. In other words, payment methods such as cash payment, letter of credit, LC payment, and against documents can be used. All natural and legal persons residing in our country, working taxable and registered with chambers of tradesmen can engage in transit trade and are called transit traders. The payment made by the transit merchant to the seller from whom he purchased the goods will be the purchase price, and the price collected from the buyer will be the sales price. These fees must be paid by one of the payment methods in export and import, through the bank by submitting purchase and sales invoices and with written instructions. Transit trade cannot be carried out with goods whose trade is prohibited by international agreements and with countries where import and export are prohibited. In transit trade, goods purchased from another country are sold to other countries without being nationalized. In this trade, where the goods are purchased from the seller and delivered to the buyer, it does not matter from which place the goods are shipped. Only shipping documents must be prepared in accordance with the legislation of the country where the goods enter and exit. Many real and legal persons in our country trade through transit trade. This system, which is easier than export and import due to its legislation, still brings foreign currency to our country. Although it seems easy, it is actually the product of hard work that requires attention.