What Everybody Ought to Know About VAT and Tipping

If you're new here, you may want to check out how this site is set up. If you like what you read, you can subscribe to my RSS feed. Thanks for visiting!

It is custom to tip in Turkey. In the majority of Istanbul’s bars and restaurants, service is not included. But tipping is not only expected for table services. So, for what services are tips expected, and how much?
On the other hand, the value-added tax (VAT) is always included in the prices displayed. But as a tourist, you can benefit form Tax Free shopping in over 2.000 retail outlets.

Tipping

In places where service is not included, it is custom to tip for the table services you received. And even in the handful of places where service is included (look for the words servis dahil), just as on mainland Europe the waiters will expect you to tip on top of that.

The rule of thumb is to leave a tip worth 10% of the bill in restaurants, cafés and bars. Bills are always brought to your table on a plate, in a box or in some kind of booklet. Although you can pay the bill with your credit card in 99% of the places, adding an amount to the original bill before paying with your credit card is not (yet) possible. Be prepared to have some cash money on you for tipping.

But restaurants, cafés and bars are not the only places where tips are expected. It is also custom to tip hotel staff, porters, hairdressers and musicians. The amount is at your discretion, but the norm is YTL 2 per person. Hamam attendants however expect 25% of the bill. Tipping taxi drivers is not custom, unless he helped you load the luggage.

Tax Free Shopping

On every purchase you make in Turkey, a value-added tax (KDV) of 8 or 18% is included in the price. As a tourist, you can claim that tax back and retrieve a refund of up to 12,5 % of the purchase price. There are however a few rules:

1. you must reside outside of Turkey
2. you must spend YTL 100 + VAT or more in one shop in one day
3. the goods need to be exported within three months following the month of purchase
4. you must buy the goods in Tax Free affiliated stores (look for the Tax Free logo)

How to retrieve your money?

Regardless of how you travel back home, you have to locate the Customs Officers and show your purchases, Global Refund Cheques, receipts and passport to customs officials and have your Global Refund Cheque stamped. If you travel by plane, you have to do this before all check-in formalities or have your goods as hand luggage.

Once you have your stamped Global Refund Cheque, you can retrieve your money in any Cash Refund Office in the world. The one at the Atatürk International Airport is open 24 hours a day.

Related posts:

1. Duty-Free Upon Arrival?
2. Don’t Judge Hotels by Their Facade
3. Smoking Like a Turk, But No Longer in Turkey
4. Have Lunch Like the Locals Do: Sultanahmet Köftecisi
5. Almost Live Video Feed of Istanbul