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May 6, 2020
Turkey collects Digital Services Tax payments
A Digital Services Tax (DST) has been levied for the first time in Turkey.
DST return filings and payments for the first taxation period (March 2020) have been made by taxpayers subject to the DST who exceed the thresholds in 2019 accounting period. Filings and payments were made through the following link: https://digitalservice.gib.gov.tr by the last day of April.1
The website is still accessible for tax registrations, filings and payments for those who have not yet filed.
Consequences of failing to register for DST, file or make payments
Digital service providers or their representatives in Turkey who have not yet filed returns or made payments in accordance with Turkish Tax Procedural Law may be served a notice urging them to comply with their obligations. This notice will be issued based on information obtained through the communication instruments listed on their websites, domain names, IP addresses, and information obtained from similar sources through the notification methods listed under the Law, electronic mail, or any other communication instruments. The notice will also be announced on the Revenue Administration’s website.
Steps to register post-deadline
If the service provider has not yet complied with the requirements, they can immediately complete their compliance requirements on a voluntary basis. If the payments are made within a specific period, penalties may be mitigated.
Requirements to claim exemption from the DST
Digital service providers whose revenue generated from services falling within the scope of the DST exceeds the local threshold (20 million Turkish Liras) in 2019, and claiming to be exempt from the DST, must certify their status by submitting a report which is furnished in accordance with international auditing standards by independent auditors from at least five different countries, including Turkey, by 30 June following the relevant fiscal period.
This report should include the following information:
For the fiscal year 2020, the thresholds will be monitored by considering the three-month period, cumulatively.
EY can assist with analysis on the applicability of the DST, compliance for online registration and filing for taxpayers who fall within the scope and exceed the thresholds as well as the coordination of the independent audit report with five countries for exempt taxpayers.
1. See EY Global Tax Alert, Turkey launches website for Digital Services Tax, dated 17 April 2020.
For additional information with respect to this Alert, please contact the following:
Kuzey Yeminli Mali Müsavirlik A.S., Istanbul