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Turkish Revenue Administration Issues Communiqué on VAT Obligations for Foreign e-Service Suppliers — Orbitax Tax News & Alerts

The Turkish Revenue Administration has issued a communiqué on the new value added tax VAT obligations for foreign e-service suppliers on supplies made to Turkish residents effective 1 January 2018. Key points include:

  • Foreign suppliers of e-services are required to register for VAT in Turkey via (not yet accessible at time of writing) if making supplies to Turkish individual residents that are not registered for VAT (no threshold applies);
  • The VAT rate is the applicable domestic rate for the particular service, which is generally the standard rate of 18%;
  • When taxable e-service supplies are made, the foreign supplier must submit a return (VAT declaration No. 3) by the 24th of the following month using the online service, with payment due by the 26th (no return required for a particular month if no taxable supplies made in that month);
  • Payments can be made through authorized banks or through the Revenue Administration website; and
  • As part of a transition, the first return and payment are due in April 2018 in respect of the first three months of the year.

Click the following link for the communiqué (Turkish language) as published.