Digital Tax for Foreign E-Commerce Companies

Finlexia is a globally recognized Turkish Accounting Firm with a long record of excellence and professional leadership in Istanbul, Turkey. There is a new law for Digital Tax for Foreign E-Commerce Companies in Turkey.

It is the beginning of a term In Turkey, where any foreign company that sells games, songs, applications, and domain names online will pay VAT. Our Turkish accountants are prepared to handle if your company is selling games songs apps domain names online in Turkey.

Finlexia handles all kinds of accounting services required to run your company in Turkey. We offer the best accounting services, at competitive prices. Our compliance team is prepared to handle your company’s compliance services in Turkey. Finlexia handles all kinds of compliance services required to run your company in Turkey.

Digital Tax for Foreign E-Commerce Companies

Finlexia Accounting Firm is a globally recognized Turkish Accounting Firm with a long record of excellence and professional leadership in Istanbul, Turkey. Our tax team is prepared to handle your company’s tax services in Turkey. Finlexia handles all kinds of tax services required to run your company in Turkey. 

Selling games songs apps domain names online in Turkey is subject to VAT. Any company or persons residing out of Turkey including Youtubers that sells digital products such as games, music, songs, books, and domain names in Turkey has to be registered as a taxpayer and must pay VAT in Turkey.

As Finlexia tax professionals, we believe that we have a duty to engage in the discussion and debate surrounding Tax Transparency and Responsibility. As the tax strategies of multinationals and domestic companies continue to be examined by both tax authorities and the public alike, we work with our clients to develop tax strategies that are fit for purpose in the tax system of tomorrow.

It is the Beginning of a Term In Turkey, Where Any Foreign Company That Sells Games, Songs, Applications, Domain Names Online Will Pay VAT

Selling games songs apps domain names online in Turkey is subject to VAT. Any company/firm that sells digital products such as games, music, books, and domain names in Turkey has been taken into the scope as a taxpayer by the Revenue Administration.

According to the communiqué, banks notify the revenue office of any such transaction by bank or credit cards. In addition, tax assignment will be made ex officio to all companies and tax payment will become compulsory as of 01st January 2018, when the law comes into force.

Ministry of Finance will take the option of collecting the tax according to the provisions of the Law on Collection Procedures of Public Receivables, as exercised for other companies in Turkey.

The banks that act as an intermediary of the payment shall inform the Revenue Administration about this matter once every three months. Revenue Administration will take action based on such information. The penal sanction shall be imposed on any defaulter company.

Special Vat Registration For Non-Resident Electronic Service Providers

Accordingly; as of 1st January 2018, VAT rules have been amended for the sales of electronic services by electronic service providers that do not reside or do not have a workplace, legal business center, and business center in Turkey to registered persons out of VAT.

Non-resident electronic service providers have to declare and pay the VAT collected from electronic services to registered persons out of VAT.

The taxpayers who have been registered as “Special VAT Registry for Electronic Service Providers” have to declare any transactions made during January, February, and March in 2018 until 24th April 2018. Otherwise, the penal sanctions shall be imposed by the Revenue Administration.

Activities Within The Scope Of Special Vat Practice

• Radio and television broadcast services,
• Telecommunication services,
• Other services provided in the electronic environment,
• Music, film, game (including any games of chance, betting, and gambling), political, cultural, arts, sports, science, and entertainment purpose broadcasts and activities, and all the other applications and in-app purchasing provided by the computer, mobile phone, and similar gadgets.

Process Regarding Special Vat Registration And Vat Return

Any service provider in this scope is first required to fill in the form on web site of the Turkish Revenue Administration before submitting the No. 3 VAT Statement they are going to submit for the first time. Upon filling in and confirmation of this form in the electronic environment, “VAT Taxpaying Liability Special to Electronic Service Providers” shall be established for the service provider in Major Taxpayers Tax Office.

Upon establishment of the taxpaying liability, the taxpayer shall be given a user code, password, and a code word to make transactions on the internet tax office. Then the taxpayer will log in to the system and make a statement thereon.

Our Services

• Keeping up-to-date on legislation and informing the client about amendments
• Carrying out tax registration transactions
• Regular follow-up and notification of tax debts of the client
• Issuance of electronic statements and control of tax declarations
• Accounting audit and company establishment services

Reach us for Digital Tax for Foreign E-Commerce Companies

Since its foundation, Finlexia Turkish Accounting Firm has been the choice of numerous clients in Turkey. Thanks to its nationally recognized accountants and accounting services, our accounting firm is now one of the leading accounting firms in Istanbul, Turkey.

You may reach our accountants and lawyers for Digital Tax for Foreign E-Commerce Companies by sending an email or through our Contact page.