What the 1% marketplace withholding is, how the base is calculated, and how sellers offset or reclaim it.
Marketplace withholding is the 1% tax a platform deducts when it pays you. It is not a commission and not a final tax. It is prepaid tax that offsets the seller’s income or corporate tax. The cut appears on the payout, is deducted on the return, and unused amounts may be refundable under the rules.
This guide explains what the cut covers, how the base works, offset, and monthly reconciliation for sole traders and companies selling via marketplaces from Ankara. It is not a company-formation checklist; that sits in our e-commerce company setup guide. The wider monthly books story is in e-commerce accounting.
What is marketplace withholding?
Electronic commerce intermediaries withhold on payments they make to sellers for brokerage under Law No. 6563. The rate is set by Presidential Decree; the rate applied from 1 January 2025 is 1%. Rates can change. Confirm the current text in Revenue Administration (GİB) notices and the related communiqué.
The marketplace withholds. The seller must not treat the net payout as “sales revenue.” Revenue is gross sales; commission is an expense; withholding is a tax receivable. Mixing the three on one line loses the offset on provisional tax.
Who is withheld from—and who is not?
Income or corporate taxpayers in scope are withheld on covered payments. Per GİB’s Income Tax General Communiqué (Serial No. 330) note, some cases have no cut: tax-exempt tradespeople, simplified-procedure earners, people without a trade or professional tax file, and certain special turnover regimes.
Payment-side exceptions exist too. Even if the order is placed via the intermediary, collection on the seller’s own EFT-POS or in cash on delivery may mean no “payment brokerage.” Sales on your own site without an intermediary are outside this marketplace withholding. That channel still follows e-ledger and e-invoice rules.
How is the tax base calculated?
The base is the product or service amount excluding VAT and accommodation tax. Commission, shipping, service fees and bank charges do not reduce the base. 1% is taken on the gross amount. Returns and cancellations shrink the base, but the platform may not mirror every correction in the same month’s payout. Over-withheld amounts are usually recovered through offset or refund.
| Item | Example | Effect on withholding |
|---|---|---|
| Sales ex-VAT | TRY 500,000 | Main part of the base |
| Returns / voids | TRY 20,000 | Reduces the base |
| Net base | TRY 480,000 | Withholding base |
| Withholding (1%) | TRY 4,800 | Prepaid tax |
| Commission + shipping | Variable | Does not change the base |
The example only shows the maths. Panel lines, return timing and VAT-inclusive displays differ by platform. Put the payout PDF next to the bank statement for the same month. If they differ, reconcile with the platform first, then book.
Where does it sit in the books?
Withholding is not an expense. It is tracked as prepaid tax. Sales are booked gross; platform commission is an expense; withholding is a tax receivable. Booking the net payout as “income” breaks both VAT and the P&L.
In Ankara files, the most common failure is compressing three platforms’ three spreadsheets into one line at month-end. For each marketplace keep sales, ex-VAT base, 1% cut, returns and the bank credit separate. That discipline saves time in monthly accounting close.
Work that takes the most time in a monthly e-commerce close
Not a measurement; the priority order seen in e-commerce files at the office.
How do offset and refund work?
The withheld amount is deducted from tax calculated in the provisional period when the related income is declared, and again on the annual return. Amounts that cannot be offset may, under the rules, be applied to other debts or refunded in cash. Thresholds and document packs change by year; read GİB’s current refund procedures before you apply.
Offset is not “the panel figure corrects itself.” The figure that goes on the return comes from payout + withholding notice + books. Sole traders talk income tax; limited and joint-stock companies talk corporate tax. For entity choice see sole trader or limited; withholding is prepaid tax in both structures.
Skipping the offset in a provisional period is “we’ll fix it later.” Sometimes you can; cash-wise it is expensive, because prepaid tax unused in that period is not in the business till. See the filing calendar and the income-tax calculator; the exact base still comes from the books.
Refund filings stall when the document pack is thin. Keep payout extracts, withholding lines and any platform correspondence in one folder. “It’s on the panel” is not a filing pack.
Seller’s monthly checklist
Tick the same five lines at each month-end. This is not an official form; a missed line becomes an offset gap three months later.
- Split ex-VAT sales, returns and withholding lines on the platform payout.
- Match the bank credit to the payout.
- Book commission and shipping invoices apart from the withholding line.
- Track the cut as prepaid tax; do not expense it.
- Send the file to your adviser for provisional-tax offset.
VAT is a separate screen. For current-period filing in Ankara see VAT returns: e-Beyan. Marketplace withholding is not VAT withholding; do not mix them in one sentence.
Three points sellers mix up
First, treating 1% as “extra commission.” Commission is a service fee; withholding is tax. Second, treating net payout as turnover. Turnover is gross. Third, leaving the cut for the annual return and forgetting provisional tax. A missed offset inflates the cash plan.
When planning and audit risk grow, tax advisory comes in. Routine monthly books are accounting work. You can discuss both in one meeting; they are not the same job.
For the legal base, read GİB’s Income Tax General Communiqué (Serial No. 330) note and the Presidential Decree that set the rate. Notices and screens change during the year; confirm the current text before you file.
Frequently asked questions
Is marketplace withholding a commission?
No. Commission is the platform’s service fee. Withholding is prepaid tax offset against the seller’s tax. They may sit side by side on the payout; they are booked separately.
Does commission reduce the base?
No. The base is the sales amount excluding VAT. Commission, shipping and bank cuts do not shrink it.
Can I expense the withheld amount?
No. It is prepaid tax, not an expense. Expensing it breaks both profit and the offset.
Does it apply to sales on my own website?
This marketplace withholding depends on the intermediary’s payment brokerage. Unmediated collection on your own site does not create the same cut. VAT and income for that channel are still recorded.
What if returns leave too much withholding?
The platform may not correct every return in the same month. Over-withheld amounts are usually recovered via offset or refund; match the panel extract to the books.
Does the tax office in Ankara change the rules?
Rate and procedure follow central law. Your local office does not change the filing channel; correct base and offset need the same discipline everywhere.
Final word
Marketplace withholding looks like a small 1% line. In the wrong place it breaks monthly profit, provisional tax and refund rights together. In the right place it is only prepaid tax: gross sales, separate commission, separate withholding.
As Ankara Muhasebeci, we set payout reconciliation, withholding offset and the monthly filing calendar with e-commerce sellers from our Kızılay office. For a case-specific review, book accounting or an introductory meeting.
Ask our advisor for an assessment tailored to your situation.
