2026 Company Car Expense Limits and VAT in Türkiye
The Revenue Administration sets separate 2026 limits for rent, acquisition taxes, depreciation and running costs. Deducting an expense, recovering VAT and paying a tax penalty are different matters.
The Revenue Administration sets separate 2026 limits for rent, acquisition taxes, depreciation and running costs. Deducting an expense, recovering VAT and paying a tax penalty are different matters.
2026 passenger-car limits
These restrictions generally concern passenger cars used in business. The Administration’s exception for vehicles used for the qualifying vehicle-rental or operating activity must be assessed separately. A private expense does not become deductible merely because it falls below a limit.
- Monthly rent per vehicle: up to TRY 46,000 excluding VAT.
- Direct expensing limit for acquisition SCT and VAT combined: TRY 1,200,000.
- Depreciable acquisition base excluding SCT and VAT: TRY 1,380,000.
- Depreciable base with taxes capitalised or for a used-car acquisition: TRY 2,600,000.
- General running-cost deduction cap for fuel, maintenance, insurance and similar costs: 70%.
Separating VAT in a TRY 60,000 rent example
Assuming monthly rent of TRY 60,000 plus VAT, separate the TRY 46,000 rental-expense ceiling from the TRY 14,000 excess. VAT attributable to non-deductible rent cannot be recovered as input VAT. VAT on the deductible portion is assessed separately under the general VAT requirements; it is not the same accounting treatment as the rent expense.
A non-deductible expense is an amount excluded from the tax-base deduction. Renting above the ceiling does not by itself constitute a tax penalty. For self-employed professional income, the Administration describes deduction of only the permitted portion rather than the business KKEG mechanism. Accounting treatment depends on taxpayer status.
Rent, running costs and depreciation differ
The monthly rental limit and the 70% running-cost restriction are separate. A renter’s own fuel and maintenance payments do not automatically become fully deductible.
A depreciation limit does not mean the full purchase price is immediately expensed. The applicable depreciation-base limit is tied to the acquisition date, while rent uses the limit for the year containing the payment month. A multi-year contract does not automatically freeze the 2026 tax limit for 2027.
Motor vehicle tax is separate too. The Administration explains that passenger-car MTV is not deductible from the tax base, except for vehicles rented out for the qualifying rental activity.
An N1 registration is not an unlimited deduction
The Administration uses tariff heading 87.03 and vehicle characteristics when defining passenger cars. N1 or van wording on a registration does not automatically establish unrestricted expense or VAT deductions for every tax. Check tariff classification, specifications, business use and taxpayer activity together.
Neither rental nor purchase is universally more profitable. Compare financing, maintenance, insurance, energy, tax effects and resale proceeds over the same period and mileage. Included rental services need written confirmation in the quotation and contract; not all expenses or responsibilities disappear.