Selling on Etsy Without a Company: Turkey's Artisan Tax Exemption (2026)

Note: this guide covers Turkey-specific rules. If you sell from another country, requirements differ.

The most common question from Turkish makers starting on Etsy: "Can I sell without forming a company?" Short answer: yes, but only for the kinds of home-made products the law lists. If you make a listed product by hand at home, you can sell without a company under the artisan tax exemption. If your product isn't on the list, or you buy it ready-made, this route doesn't fit.

The details below come from the Turkish Revenue Administration's (GİB) official explainer; sources are at the end.

What it is

A regime that lets people who make products at home and sell them online trade without forming a company, keeping books or filing returns. Its legal basis is Article 9(1)(10) of Turkey's Income Tax Law.

Under it you have no obligation to register as a taxpayer, issue documents, keep books or file a return. Tax is collected through a withholding the bank applies when your sales revenue reaches your account.

Which products qualify

The law lists the home-made products one by one. GİB's list:

• Towels, covers, sheets, socks, rugs, kilims and woven goods
• Goods made from leather scraps
• Knitwear, lace, crochet and all kinds of embroidery
• Sequin, spangle and bead work, artificial flowers
• Straw, baskets, brooms, mats, brushes, rope and cord
• Souvenir items
• Foods such as tarhana, noodles (erişte) and mantı

The list ends with "such as", so whether a product not explicitly named qualifies is the tax office's call. If you plan to sell ceramics, woodwork, candles, soap, cosmetics or full-leather goods, ask your tax office in writing before relying on the certificate.

Conditions

All of GİB's conditions apply together:

• Products are made in the home you live in, with no separate workplace
• No industrial or series-production machinery is used
• Sales are made only online
• You obtain the artisan tax exemption certificate
• You open a commercial account at a bank in Turkey and collect all revenue through it
• The activity isn't run as if dependent on a company
• You aren't already taxed on actual earnings for commercial, agricultural or professional income

For Etsy, the practical consequence: set this commercial account as your Etsy Payments deposit account.

If part of your sales happens online and part offline (markets, stalls), a different sub-paragraph (9(1)(6)) applies instead. The two can't be used in the same year.

How the 4% withholding works

The bank withholds 4% income tax on every amount transferred to your commercial account, on the transfer date. If you employ one or more workers the rate is 2%, provided the worker worked at least ten days that month.

Beyond that withholding there's no separate income tax return. On the other hand, you can't deduct expenses such as materials, shipping or ads.

The 2026 revenue cap

If your total sales revenue in a calendar year exceeds TRY 1,900,000 for 2026, you keep the exemption for that year. From the start of the following year you're taxed on actual earnings, which means forming a company.

If you sell several products, the cap applies to the combined revenue, not to each product. The cap is updated every year.

How to get the certificate

Two routes:

• Online: Digital Tax Office → My Petitions → Create New Petition → Artisan Tax Exemption Petition
• In person: the tax office for your home address

The certificate is renewed every three years. Keep the expense receipts issued to you and the documents for goods and expenses you buy for 5 years.

What it doesn't cover

• Goods bought ready-made and resold are not covered. The exemption is for makers, not intermediaries.
• If any condition is broken, the exemption is lost from the start of that calendar year; unpaid tax is collected with a tax-loss penalty and late-payment interest.

When to incorporate

Practical signals: revenue approaching the TRY 1,900,000 cap; you want to deduct expenses; part of your catalog is externally sourced or not on the list; or you need corporate invoicing and wholesale relationships. At that point a sole proprietorship is the typical step. If you're weighting the US market, a US LLC is a separate consideration.

FAQ

Is the artisan exemption certificate enough to sell on Etsy? Yes, if your product is of the listed kind and made by hand at home, you sell only online, and revenue is collected through a commercial account. If any of these is missing you need a sole proprietorship.

Can I sell jewelry, ceramics or woodwork? These aren't explicitly on GİB's list; only bead work and souvenir items are. It's the tax office's decision, so ask in writing first.

What is the withholding rate? 4% on amounts transferred to the commercial account; 2% if you employ at least one worker.

What is the 2026 revenue cap? TRY 1,900,000. Exceed it and you move to actual-earnings taxation from the following year.

How long is the certificate valid? Three years, then it's renewed.

The takeaway

The artisan exemption is a light, company-free start for someone who makes listed products at home and sells them only online. Tax is collected through the bank's 4% withholding. It's maker-specific, capped at TRY 1,900,000 for 2026, and gives way to a company as the business grows.

For the full picture see the Etsy selling guide; for end-to-end setup there's Etsy consulting.

Sources and scope

• Turkish Revenue Administration (GİB), Artisan exemption for online sales of home-made products (explainer for Income Tax Law Art. 9(1)(10): 2026 revenue cap, withholding rates, conditions and application route)
• Turkish Income Tax Law No. 193, Article 9

This guide is general information, not tax advice. Rates and caps are updated annually. Confirm your own situation with an accountant or your tax office.