Software Services from Abroad to Turkish Brands: Invoicing, Tax, Contracts

Last week, while meeting with an e-commerce brand, their accountant got on the phone and asked: "We're going to receive services from abroad, what will the invoicing situation be like?" It's a normal question, but the answer is an area most brands in Turkey don't know about. I've been providing software and automation services to Turkish brands from the Netherlands since 2019. Before founding FUTIA, I started as a freelancer, and now I have a limited company. During this process, I've worked with dozens of brands, and each one's accountant said something different. Some said "deduct VAT and pay," some said "withholding tax is required," some said "don't do anything." The truth is: When receiving software services from abroad, you're not required to know what documents to request, how to invoice, or what tax rules apply—but knowing makes your job easier. In this article, I'll explain how a Netherlands-based software studio works with Turkish brands, invoicing processes, contract details, and tax deductions based on my own experience. My goal isn't to provide legal advice, but to show how it works in practice.

Why Choose Software Services from Abroad?

The software sector in Turkey is growing, but finding competent teams in specialized areas is still difficult. I work on AI automation and programmatic SEO. There are very few people working in this field in Turkey, and most are focused on their own projects. Receiving services from abroad has several advantages:

• Narrower area of expertise: As someone with 6 years of social media marketing experience and 2 years of AI automation experience in the Netherlands, I focus only on what I can do. Finding someone with the same profile in Turkey takes time.
• Pricing clarity: Agencies in Turkey generally work on monthly retainers or project basis, with uncertain pricing. I work with fixed packages: site + automation + monthly maintenance. The customer knows what they're getting.
• Time zone advantage: There's a 1-2 hour difference between the Netherlands and Turkey, making communication easy. This is much harder when receiving services from the US or Asia.
• Legal security: Working with an EU-based company means compliance with GDPR and other regulations. Some brands in Turkey care about this.

For example, when working with diolivo.com.tr, I set up CartBounty cart recovery automation. We achieved 340% traffic growth in 6 months. It's possible to find this kind of specialized service in Turkey, but agencies generally offer it as part of a package service, not standalone. I only do this, so I can deliver faster and cheaper.

Invoicing Process: How to Invoice from the Netherlands to Turkey?

This is the most frequently asked question. Turkish brands generally wonder: "How will we invoice, how will you invoice?" Both sides invoice, but for different purposes.

How Do I (FUTIA) Invoice?

I have a limited company in the Netherlands (B.V. structure). I issue a Dutch invoice for each project. This invoice includes:

• No VAT: Since Turkey is outside the EU, VAT (BTW) doesn't apply. I note "Reverse charge" or "Export of services" on the invoice.
• In Euros: All my invoices are in Euros. If Turkish brands pay in TL, it's calculated based on that day's exchange rate.
• KVK number: I include my Netherlands Chamber of Commerce (KVK) number. This shows the company is registered.
• Service description: Clear descriptions like "AI automation setup," "Website development," "Monthly maintenance." Accountants care about this.

Example invoice line:

Service: AI-powered content automation for italyanmutfagi.com Quantity: 1 Unit Price: €2,400 VAT: 0% (Export of services - Art. 21 VAT Directive) Total: €2,400

I send this invoice as a PDF. Turkish brands can forward it to their accountants and record it as an expense.

How Does the Turkish Brand Invoice?

In Turkey, "withholding tax" (stopaj) applies to service purchases from abroad. The Turkish brand withholds part of the amount paid to me as withholding tax to the tax office. Rates vary, but generally:

• Software services: 20% withholding (VAT Law General Communiqué)
• Consulting: 20% withholding
• Design/creative: 20% withholding

The accountant calculates this and deposits it to the tax office. The Turkish brand also records this transaction as an expense in their own books. For me, withholding isn't a cost, it's just part of Turkey's tax system. When filing my tax return in the Netherlands, I can't claim this withholding as an expense because there's a double taxation agreement between Turkey and the Netherlands, but software services aren't clearly defined in this agreement. That's why I accept the withholding and price accordingly.

Contract: What Do I Pay Attention To?

I sign a simple contract before starting each project. Agencies in Turkey generally prepare 10-page contracts; I keep it to 2-3 pages. Important clauses:

1. Scope of Service

I clearly write what I'll do. For example:

• Site setup: WordPress, custom theme, 5 pages of content
• Automation: Claude API integration, 10 daily content generation
• Monthly maintenance: Weekly backup, security updates, 2 hours technical support

This way, there are no "but I wanted this too" arguments.

2. Payment Terms

I generally take 50% upfront, 50% on delivery. For monthly maintenance packages, I invoice on the 1st of each month and expect payment within 7 days. I don't stop service for late payment, but if it exceeds 30 days, I can terminate the contract.

3. Intellectual Property Rights

This is very important. I transfer the code, design, and automation logic I produce to the customer. So I can't sell the programmatic SEO code I wrote for doktorbul.com to another customer. But I can use the general framework (e.g., Claude API wrapper) in other projects. I write this clearly in the contract.

4. Confidentiality

I process all customer data in compliance with GDPR. Turkey has KVKK, and I comply with that too. The contract includes a clause that "customer data is not shared with third parties."

5. Termination Conditions

Both parties can terminate the contract with 30 days' notice. This is important for monthly maintenance packages. Turkish brands generally ask "can we cancel anytime?" My answer is yes, but after 30 days.

Tax Deductions and Withholding: How Does It Work in Practice?

This part is a bit technical, but I'll try to make it understandable. There are three taxes on service purchases from abroad in Turkey:

1. VAT Exemption

Software services are considered "export," meaning VAT doesn't apply. The Turkish brand doesn't pay VAT on the service they receive from me. I also can't charge VAT on my invoice because the customer is in Turkey. This is advantageous for both parties.

2. Withholding Tax (Tevkifat)

As I explained above, around 20%. The Turkish brand withholds this and deposits it to the tax office. The net amount is paid to me.

Example:

• Invoice amount: €2,400 (approximately 85,000 TL, exchange rate 35.40 TL)
• Withholding (20%): 17,000 TL
• Paid to me: 68,000 TL

The Turkish brand deposits 17,000 TL to the tax office and sends me 68,000 TL. In the Netherlands, I declare this 85,000 TL (€2,400) as income.

3. Tax in the Netherlands

In the Netherlands, limited companies pay 25.8% corporate tax (as of 2024). I declare FUTIA's income at year-end. I can't claim the withholding as an expense, but I can apply to the double taxation agreement to avoid being taxed again in the Netherlands on the withholding deducted in Turkey. In practice, I don't do this because the paperwork is extensive and not worth it for small amounts.

Payment Methods: Wise, PayPal, Bank Transfer

Turkish brands generally ask "how will we make payment?" I use three methods:

1. Wise (formerly TransferWise)

My most preferred method. I have a Euro account through Wise; Turkish brands send TL and convert to Euros. Commission is around 0.5%, very low. Also, Wise doesn't invoice, it only provides transfer service, so there's no withholding issue.

2. PayPal

Some brands use PayPal. Commission is around 3-4%, more expensive than Wise. Also, a PayPal Business account is required; I can't receive business payments with a personal account.

3. Bank Transfer (SWIFT)

Large companies generally do bank transfers. I have an ABN AMRO account; I provide IBAN and SWIFT code. Turkish banks charge SWIFT fees (generally 20-50 Euros), so I don't prefer this for small payments.

Real Case: Working Process with diolivo.com.tr

diolivo.com.tr is an e-commerce brand selling organic olive oil in Turkey. They started working with me in 2023. At the first meeting, their accountant asked "we're going to receive services from abroad, how will it work?" We followed these steps:

1. Quote: €1,800/month monthly maintenance + CartBounty cart recovery automation setup (€2,400 one-time) 2. Contract: We signed a simple 2-page contract with clearly written scope of service 3. Invoice: I issued a Dutch invoice on the 1st of each month, no VAT, 20% withholding 4. Payment: They sent TL through Wise, converted to Euros, 0.5% commission 5. Withholding: Their accountant deposited the withholding to the tax office each month and sent me documentation

We achieved 340% traffic growth in 6 months. Thanks to cart recovery automation, 18% of abandoned carts returned. We're still working now, and we haven't experienced any tax or invoicing issues.

Common Mistakes and How to Prevent Them

Some mistakes repeat when working with Turkish brands:

1. Forgetting Withholding

Some accountants forget to withhold, then the tax office issues a penalty. I note "20% withholding should be applied in Turkey" on every invoice.

2. Adding VAT

Some brands say "we'll pay VAT." No, there's no VAT on foreign service purchases. If you add it, you create unnecessary cost.

3. Invoicing in TL

I invoice in Euros; if the Turkish brand pays in TL, there's an exchange rate difference. Some brands say "you invoice in TL," but I declare in Euros in the Netherlands, I can't invoice in TL.

4. Not Signing a Contract

For small projects, they say "no contract needed." Then "but I wanted this too" arguments arise. I sign a contract for every project, even via email.

Pricing: Why Does Foreign Service Seem Expensive?

Turkish brands sometimes say "buying from the Netherlands is more expensive." Actually it's not, it's just calculated differently. Agencies in Turkey price like this:

• Monthly retainer: 15,000-30,000 TL (unclear scope)
• Project-based: 50,000-100,000 TL (long delivery time)
• Hourly: 500-1,000 TL/hour (difficult to track hours)

I offer fixed packages:

• Site + automation: €2,400 (approximately 85,000 TL)
• Monthly maintenance: €600 (approximately 21,000 TL)

At first glance it seems expensive, but it includes:

• Unlimited revisions (within reasonable limits)
• 24/7 technical support (via WhatsApp)
• Weekly backup and security
• Claude API costs (monthly $200-300)

Agencies in Turkey provide these for extra fees. My pricing is clear, no hidden costs.

Legal Documents: What Do I Request, What Don't I Request?

Some Turkish brands ask "what documents should we request from you?" Here are the documents I request:

Documents I Request:

1. KVK certificate: Shows my Netherlands Chamber of Commerce registration, renewed annually 2. Tax number: I share my Netherlands tax number (BTW-nummer) 3. Invoice: Regular Dutch invoice each month 4. Contract: Signed PDF

Documents I Don't Request:

1. Apostille: Some large companies in Turkey request apostille; I don't provide it because it's costly (€100-200) 2. Notarized contract: Not necessary, email is sufficient 3. Tax plate: There's no physical tax plate in the Netherlands, there's a digital document

Future: Why Will Brands in Turkey Receive Foreign Services?

The software sector in Turkey is growing, but there's still a gap in specialized areas. Areas like AI automation, programmatic SEO, headless CMS are newly developing in Turkey. I've been working in these areas for 2 years; there are very few people with similar experience in Turkey.

For example, when working with memuratamalari.com, I set up daily 50+ job posting automation using the ilan.gov.tr API. Currently there are 40,400 monthly organic searches. This kind of project can be done in Turkey, but who will do it? Most agencies don't do API integration; I only do this.

Another example is italyanmutfagi.com: 618 automatically generated recipes, rich results on Google with Schema.org Recipe markup. This kind of automation is offered by very few agencies in Turkey; I provide this as a package service.

If you're also considering receiving software services from abroad, clarify invoicing and tax processes in advance. Talk to your accountants, learn withholding rates, sign a contract. As FUTIA, I offer site + automation + monthly maintenance services to Turkish brands. For detailed information, you can reach out via WhatsApp: +90 532 491 17 05 or write to info@futia.net.

One Last Note: Why the Netherlands?

Some brands ask "why do you work from the Netherlands?" The answer is simple: The Netherlands has tax advantages for the software sector, free movement within the EU, GDPR compliance is mandatory. Also, Amsterdam has a strong startup ecosystem, networking is easy. I could have worked in Turkey too, but establishing a company in the Netherlands is simpler, bureaucratic processes are faster. KVK registration takes 1 week, in Turkey 1 month. Opening a bank account takes 3 days, in Turkey 2 weeks. This speed advantage also reflects on customers. When you want to start a project, we can sign a contract and start work within 1 week.