Excise tax in Turkey is applicable on different group of products. Different than VAT, this tax is applied only once to a product. After tax is applied once, even the product is delivered again to other traders, excise tax is no more applicable on the same product.
“With a recent law amendment, soda waters with flavor is included in the scope of Excise Tax and this change is applicable as of 1/1/2018.”
Products in the scope of Excise Tax is categorised under 4 lists. Below you may find the scope of each list and general taxation rule applicable.
List I – Fuels and Other Oil Products
Excise list I consists of 2 sub-group of products;
List I (a) includes motor and heating fuels. This group is the main scope of the Excise Tax.List I (b) includes substitutable products to fuel such as mineral oils or solvents. This group of products are also in the scope of excise tax. But this tax may be refunded under certain conditions by the producers if these products are used as a raw-material in the production.
Excise tax on the List I products is either levied on the delivery of producer or importer.
List II – Motor Vehicles
Motor vehicles (e.g. car, truck, bus, aircraft, boat etc.) are in the scope of Excise Tax in Turkey. Excise tax on these products is either;
- levied on traffic registration if the vehicle is subject to traffic registration or,
- on importation or delivery of the producer if the vehicle is not subject to traffic registration.
List III – Alcoholic / non-Alcoholic Beverages and Tobacco Products
Excise list III also consists of 2 sub-groups;
List III (a) includes both;
- some non-alcoholic beverages (i.e. soda water of cola/fruit flavored, or other fruity waters) and
- all alcoholic beverages
List III (b) includes tobacco products.
Tax of Excise List III products is either levied on importation or on the delivery of the producer.
List IV – Other Luxury Products
This list is a mixture of all other products that are determined as in the scope of Excise Tax. Some of these products are;
- Hair spray
- Fur or leather products
- Mobile phones
- Some electrical household appliances etc.
Tax on these products is also either levied on importation or on the delivery of the producer.