What Is Actual Method Taxation? How It Differs from the Simplified Method

Actual method taxation (gerçek usul) is the taxation method in Türkiye in which business income is calculated and declared based on real revenue and expenses, supported by books and documents. Here is how it differs from the simplified method (basit usul): VAT (KDV), bookkeeping and the marketplace withholding tax (stopaj) apply in full under the actual method, while e-document obligations depend on your ledger type and whether you are an e-invoice (e-Fatura) taxpayer.

What is the actual method, and who is subject to it?

Under the actual method, a seller deducts documented expenses from the revenue earned during the year and declares the remaining profit. Deductible expenses include purchases of goods, marketplace commissions, shipping and rent. Tax is calculated on this profit.

Who is subject to the actual method can be summarized as follows:

• Limited and joint-stock companies are always taxed under the actual method and pay corporate income tax.
• Sole proprietorships are subject to the actual method if they do not meet the simplified method conditions. Their business income is subject to income tax at progressive rates ranging from 15% to 40% under the 2026 tariff.

Most marketplace sellers fall into one of these two groups. If you are deciding whether to set up a sole proprietorship or a company, take a look at our sole proprietorship vs. limited company comparison.

What is the simplified method?

The simplified method is a streamlined taxation method designed for small-scale tradespeople. No books are kept under the simplified method; income is determined based on purchase and sales documents. A simplified method taxpayer does not file VAT returns, but in return cannot deduct the VAT paid on purchases either.

To benefit from the simplified method, several conditions must be met at the same time:

• The activity itself and the way it is carried out,
• The rent or equivalent rent of the business premises,
• The annual purchase and sales amounts or gross business revenue,
• In some cases, the location of the business premises (such as metropolitan municipality boundaries).

These amounts are updated every year. Check the current limits in announcements from the Turkish Revenue Administration (GİB).

The simplified method in e-commerce: be cautious

Whether someone selling online can remain under the simplified method is not a question that can be answered in a single sentence. The outcome depends on the nature of the activity, the sales channel and current regulations. Marketplaces' seller acceptance requirements are also a deciding factor. For example, Trendyol does not accept sellers without a company (individual sellers). Before registering on a marketplace, check that platform's own requirements to see which taxpayer types it accepts.

People who handcraft products at home and sell only online have a separate status. They may qualify for the tradesman exemption rather than the simplified method; the details are explained in our article on selling online from home and the tradesman exemption.

Differences between the actual method and the simplified method

The differences that matter most to marketplace sellers are shown side by side below:

Stopaj (withholding tax) affects cash flow in practice. The marketplace deducts it from the marketplace payout (hakediş) of a seller under the actual method according to the formula below:

Kesilen tutar (the withheld amount) is not lost: it is deducted from the tax calculated on the provisional and annual returns, and any portion that cannot be offset is refunded. You can find the details in our e-commerce withholding tax guide and our article on offsetting withholding tax.

Ledger types: business account or balance sheet?

There are two different bookkeeping systems within the actual method.

Business account basis: A simple system used by sole proprietorships up to certain thresholds. Expenses are tracked on one side and income on the other in a single book. The thresholds are updated every year through revaluation.

Balance sheet basis: Companies and sole proprietorships that exceed the thresholds use this system. A journal, general ledger and inventory book are kept, and transactions are recorded according to the Turkish Uniform Chart of Accounts. Since January 1, 2025, all taxpayers keeping books on a balance sheet basis are subject to the e-ledger (e-Defter).

A common misconception: a sole proprietorship on the business account basis switching to e-invoice does not by itself mean it has moved to the balance sheet basis. e-Invoice is a document system; it does not determine your ledger type. Have your ledger type checked separately against the thresholds.

Impact on e-document obligations

Your method and ledger type directly determine which invoice you issue and how. For sellers who are not e-invoice taxpayers, the 2026 picture looks like this:

For example, a seller under the simplified method can document a sale below 3,000 TL including taxes with a paper invoice in 2026; a sale above this amount requires an e-archive invoice. The details of the 2027 change are explained in our article on the removal of the e-archive amount limit.

The e-invoice requirement, on the other hand, depends on revenue. The general threshold is 3,000,000 TL. For those selling on their own website, on marketplaces or through other electronic channels, the threshold is 500,000 TL. Taxpayers whose gross sales revenue reaches or exceeds these amounts must switch to e-invoice from July 1 of the following year.