What Is the Tax Exemption for Home-Based E-Commerce Sellers?
What Is the Tax Exemption for Home-Based E-Commerce Sellers?
The tax exemption available to individuals who manufacture products at home and sell them online is an important practice that supports greater participation in economic life, particularly for homemakers. The conditions for benefiting from this exemption, annual revenue limits, and application procedures are among the most frequently asked questions.
If you sell handmade jewelry, soaps, knitted products, or decorative items that you produce at home through Instagram, online stores, or various marketplaces, you may be able to operate legally without establishing a company or paying income tax, provided that you meet the relevant requirements. The small-business exemption provisions under the Turkish Income Tax Law are designed to enable small-scale producers to carry out their activities within a legal framework.
In this guide, we explain the revenue limits applicable to home-based e-commerce sellers in 2026, the requirements for benefiting from the exemption, the application process, and how tax withholding applied through bank accounts works.
Small-Business Tax Exemption for Home-Based Sellers
Article 9 of the Turkish Income Tax Law regulates the small-business exemption, which allows individuals who engage in small-scale production or commercial activities primarily based on their own labor to be exempt from income tax.
Two different provisions are particularly relevant to individuals who sell products manufactured at home online. These two provisions are sometimes confused with each other:
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Income Tax Law Article 9/6: Applies when products manufactured at home are sold both online and through traditional channels such as markets, bazaars, fairs, and charity events. The revenue threshold is based on the annual gross minimum wage.
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Income Tax Law Article 9/10: Applies when products manufactured at home are sold exclusively through the internet and similar electronic platforms. The annual revenue threshold is determined separately from Article 9/6 and is generally higher.
The two provisions cannot be used simultaneously during the same calendar year. If all of your sales are made online, Article 9/10 applies. If you also use physical sales channels in addition to online sales, the conditions under Article 9/6 apply.
What Benefits Does the E-Commerce Tax Exemption Provide?
Individuals who meet the requirements for the small-business exemption can benefit from several administrative and tax-related advantages, including:
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No obligation to file an annual income tax return,
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No requirement to maintain commercial books,
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No obligation to issue invoices or retail sales receipts,
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No requirement to maintain a tax certificate.
However, the exemption does not mean that all forms of taxation are eliminated. When sales proceeds are deposited into the designated bank account, income tax withholding is automatically applied by the bank. This withholding is considered the final tax and therefore does not require the taxpayer to file an additional income tax return.
What Is the 2026 Revenue Limit for Home-Based E-Commerce?
The revenue thresholds determined for 2026 vary depending on the sales channel used.
| Provision | Scope | 2026 Revenue Limit |
|---|---|---|
| Article 9/10 | Sellers operating exclusively through online and electronic platforms | TRY 1,900,000 |
| Article 9/6 | Sellers using online channels as well as markets, bazaars, fairs, and similar traditional channels | TRY 396,360 |
The applicable threshold is not calculated separately for each product. Instead, the total revenue generated from all products sold during the year is taken into account. For example, if you sell five different types of products, the combined revenue from all five product groups must remain below the applicable threshold.
What Happens If the Revenue Limit Is Exceeded?
If your annual sales revenue exceeds the applicable threshold, you can continue to benefit from the exemption during the calendar year in which the threshold is exceeded. Bank withholding also continues to apply until the end of that year.
However, beginning with the following calendar year, your small-business exemption automatically ends and you must become subject to income tax under the actual taxation regime.
One important point to keep in mind is that once the applicable limit has been exceeded, you cannot benefit from the same exemption again. Therefore, if your sales are approaching the relevant threshold, it may be useful to consult a certified public accountant in advance and plan for the following period.
If you are considering expanding your business after moving to the actual taxation regime, you may also evaluate the option of establishing a sole proprietorship. Once you become subject to the actual taxation regime, you will also be required to issue invoices, and you can use e-invoicing solutions to manage this process more efficiently.
Who Can Benefit from the E-Commerce Tax Exemption?
Several conditions must be met simultaneously to benefit from the small-business exemption under Article 9/10.
The main requirements include producing the products at home, not establishing a separate workplace, not using industrial-type production machinery, selling the products exclusively online, and staying within the annual revenue threshold.
The applicant must also not already be subject to income tax under the actual taxation regime due to another commercial, agricultural, or professional activity. In addition, the activity must not be carried out continuously under the instructions and supervision of another income or corporate taxpayer.
Can You Open a Separate Workplace for Production?
One of the main requirements of the small-business exemption is that production must take place in the person's own residence. Therefore, a separate shop, office, workshop, or warehouse should not be established.
Using a room or garage within your home for production does not, by itself, create a problem. However, operating from a separately rented workshop or store may result in the loss of the exemption.
Can Industrial-Type Machinery Be Used?
The equipment used in production must not be industrial machinery designed for mass production.
Household equipment such as sewing machines, embroidery machines, ovens, irons, and food processors generally does not create an issue. However, the use of industrial overlock machines, laser-cutting equipment, or machinery requiring an industrial electricity subscription may cause the exemption conditions to be violated.
Can Resellers or Dropshipping Businesses Benefit from the Exemption?
No. The fundamental principle behind the small-business exemption is that the products sold must be produced through the individual's own labor.
Purchasing ready-made products and reselling them without carrying out any production or processing does not qualify. Likewise, the dropshipping model, in which products are shipped directly from a supplier to the customer, does not fall within the scope of this exemption.
Individuals operating such businesses generally need to establish an income tax liability under the actual taxation regime or, where appropriate, establish a sole proprietorship.
How to Obtain a Small-Business Tax Exemption Certificate
Individuals who wish to benefit from the exemption under Article 9/10 must apply to the authorized tax office responsible for their place of residence and obtain a Small-Business Tax Exemption Certificate.
The application process generally consists of the following steps:
Complete the "Small-Business Tax Exemption Certificate Application Petition" through the Digital Tax Office or by applying directly to the relevant tax office.
Enter your activity code and home address accurately and completely.
No application fee is required.
The tax office reviews the application and initiates an inspection process.
If the inspection is successful, the certificate is approved and can be obtained electronically as a PDF or in signed form from the tax office.
The certificate is valid for three years from the date of issuance. A new application must be submitted when the validity period expires.
Applying Through the Digital Tax Office
One of the easiest ways to apply is through the Digital Tax Office. After logging in with your e-Government credentials, you can submit the relevant Small-Business Tax Exemption Application Petition electronically.
This method eliminates the need to visit the tax office in person and allows you to track the status of your application through the same system.
How Does the Tax Office Inspection Work?
Following the application, the tax office conducts an inspection. In general, an officer visits the address where the production takes place within a few business days.
During the inspection, the officer checks whether the production is actually carried out at home, examines the equipment being used, and verifies whether the activity meets the exemption requirements. If necessary, the applicant may be asked to show samples of the products, and the findings are recorded in an official inspection report.
If the conditions are not met—for example, if industrial machinery is found—the application may be rejected. For this reason, it is important to make sure that your production environment meets the exemption requirements before submitting your application.
Key Points to Consider Regarding the E-Commerce Tax Exemption
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In 2026, the annual revenue threshold is TRY 1,900,000 for sellers operating exclusively online and TRY 396,360 for sellers who use both online and traditional sales channels.
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The exemptions under Articles 9/6 and 9/10 cannot be used simultaneously.
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Sales proceeds generated under the Small-Business Tax Exemption Certificate must be collected through a bank account designated exclusively for this activity.
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Banks generally apply a 4% income tax withholding rate to amounts deposited into the account. Under the applicable conditions, this rate may be reduced to 2% when employees are employed.
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Reselling ready-made products and engaging in dropshipping activities do not qualify for the exemption.
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If the annual revenue threshold is exceeded, the exemption ends as of the following year and the same exemption cannot be used again.
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Benefiting from the small-business exemption does not, by itself, create a mandatory Bağ-Kur obligation. However, 4/b social security obligations may arise when the taxpayer moves to the actual taxation regime.
How Is Withholding Tax Calculated Under the Small-Business Exemption?
Although the small-business exemption eliminates the requirement to file an annual income tax return, bank withholding continues to apply.
When sales proceeds are transferred to the designated commercial bank account, the bank automatically deducts the applicable tax from the amount and reports the withheld tax to the tax office on behalf of the taxpayer.
This mechanism differs from the 1% e-commerce withholding that may apply to transactions carried out through online marketplaces. Marketplace withholding concerns sellers who are subject to income or corporate tax, whereas the withholding discussed here applies to individuals benefiting from the small-business exemption.
Is Opening a Commercial Bank Account Mandatory?
To benefit from the exemption under Article 9/10, the taxpayer must open a dedicated commercial bank account with a bank operating in Türkiye and use it exclusively to collect proceeds from these sales.
All sales revenue should be collected through this account. If necessary, multiple accounts can be opened at different banks or at different branches of the same bank. However, because amounts deposited into these accounts are subject to withholding, it is advisable to use them solely for sales covered by the exemption.
Avoiding personal expenses through these accounts is also recommended to ensure that business-related transactions remain clearly separated.
What Is the Difference Between the 2% and 4% Withholding Rates?
The withholding rate applied by the bank may vary depending on whether the seller employs workers.
| Situation | Withholding Rate | Application |
|---|---|---|
| No employees | 4% | Automatically deducted by the bank when the amount is transferred. |
| At least one employee | 2% | The reduced rate applies if the employee works for at least 10 days during the relevant month. |
It is the taxpayer's responsibility to notify the bank when an employee is hired or leaves employment.
Failure to provide accurate and timely information may result in underpaid tax being assessed against the taxpayer, together with late-payment interest and applicable penalties.
Which Marketplaces Can Be Used with a Tax Exemption?
Individuals holding a Small-Business Tax Exemption Certificate can sell through various marketplaces such as Trendyol, Hepsiburada, Etsy, Shopier, and Çiçeksepeti. They can also sell products through social media platforms such as Instagram and Facebook.
Many platforms provide a separate registration process for individual sellers based on the certificate and Turkish ID number. During registration, sellers are generally asked to provide a copy of their exemption certificate and information about their designated commercial bank account.
If you sell internationally through platforms such as Etsy, additional customs and export requirements may apply. These obligations should therefore be reviewed separately before beginning international sales.
Are Bağ-Kur and Social Security Contributions Mandatory for Home-Based E-Commerce Sellers?
Obtaining a Small-Business Tax Exemption Certificate does not, by itself, automatically make an individual subject to mandatory Bağ-Kur, or 4/1-b, social security coverage.
Individuals who are already employed and covered by SGK under 4/a generally do not automatically lose their existing insurance status because of additional income earned under the small-business exemption.
Individuals who are not employed elsewhere may consider voluntary social security contributions if they wish to increase their retirement contribution days. This is not mandatory.
However, once the revenue threshold is exceeded and the taxpayer moves to the actual taxation regime, 4/b Bağ-Kur obligations may become applicable.
Small-Business Exemption for Home-Based Producers
Regulations allowing individuals who manufacture products at home to sell them through the internet and similar electronic channels provide an opportunity for small-scale producers to conduct their activities more easily.
In particular, products such as towels, covers, sheets, lace, socks, and similar handmade goods produced and sold from home may qualify for the small-business exemption if the relevant conditions are met.
These regulations allow individuals who want to earn income through home-based production to contribute to their household finances while carrying out their activities within a legal and regulated framework.
2026 E-Commerce Tax Exemption Limit
To continue benefiting from the e-commerce tax exemption, annual sales revenue must remain below the applicable statutory threshold.
Revenue limits are updated each year based on criteria such as the revaluation rate. As long as your annual sales remain below the applicable threshold and you continue to meet the other requirements, you may continue benefiting from the small-business exemption.
| Year | Annual Revenue Limit | Period |
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| 2024 | TRY 1,100,000 | Previous period |
| 2025 | TRY 1,580,000 | Previous period |
| 2026 | ~TRY 1,983,000 | Calculated new limit |
How Can E-Commerce Sellers Benefit from the Tax Exemption?
Individuals who wish to benefit from the tax exemption must generally meet the following conditions:
Production must be carried out at home, and no separate workplace should be established.
Industrial machinery capable of mass production must not be used.
Products must be sold exclusively through the internet and similar electronic platforms.
A Small-Business Tax Exemption Certificate must be obtained from the tax office.
Sales proceeds must be collected through a designated commercial bank account held with a bank operating in Türkiye.
Annual revenue must remain below the applicable legal threshold for the relevant calendar year.
The individual must not already be subject to income tax under the actual taxation regime due to commercial, agricultural, or professional activities.
All of these conditions should be considered together. In particular, the sales channel, production method, equipment used, and total annual revenue are key factors in determining whether the exemption can be maintained.
