Digital Services VAT in Turkey

What is Digital Services VAT  ?

According to VAT Law Article 9, non-residents that supply services electronically to Turkey shall register for VAT purposes, submit their VAT declarations monthly and pay VAT in Turkey starting from 1/1/2018.

All digitally supplied services to non-taxpayer natural persons in Turkey is regarded in the scope. Following services might be assumes as examples to digital services;

  1. Web related services (domain, hosting, and all other related services)
  2. Software and hardware distant maintenance, distant system management and online data storage services
  3. Sales of all kinds of softwares and digital products (firewalls, device drivers, antivirus softwares etc.) including access to them, download and update.
  4. Any kind of digital content providing services (e.g. financial/legal content service, online newspaper and publishings, blogs, web statistics services, search engine and indexing services etc.).
  5. All kind of service provided through applications or similar tools on computer or mobile devices such as online/offline game memberships, app download, music service provider app memberships, on-line broadcasting services etc.
  6. Distant education services with limited human involvement
  7. Radio and Television broadcast services,
  8. Other services that is similar to above and supplied through all electronic digital means.

VAT return of a month shall be submitted on 24th of the following month and the VAT shall be paid until 26th of the same month with declaration. Only in the beginning of 2018, declaration of months January, February and March will be submitted all together in April 24th and be paid on April 26th.

To detect non-complying service providers, banks and payment service providers are held responsible to report digital service fee collections to tax authority.

Digital Services VAT Turkey

How we may assist you ?

We may assist you during all the process of;

  • Registration in Turkey for Digital Services VAT
  • Preparing monthly VAT return
  • Submitting and/or compliance control of your submitted return
  • Consulting and reporting to you for your tax related activities in Turkey.

Please feel free to contact us for all you queries.

What may happen if you do not register and pay VAT in Turkey ?

According to VAT Law, Turkish Tax Authorities may shift the tax responsibility to any party that is related with the taxpayer or involved in a transaction. Accordingly, a sister company established in Turkey, or the Bank that collects the service fee may be held responsible for the tax payment if the original service provider does not fulfill this requirement.