Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

March 21, 2022
2022-5286

Turkey’s General Directorate of Customs issues letter clarifying the Special Consumption Tax base

The Turkish General Directorate of Customs issued a letter on 4 March 2022 (the Letter) to clarify the treatment of warehousing service fees, including the Value Added Tax (VAT) and the calculation of the Special Consumption Tax (SCT) base.

The March 2022 Letter refers to the Turkish Revenue Administration’s (TRA) letter of 6 January 2022 which states that the SCT should be calculated on the amount after including the Turkiye Radyo Televizyon (TRT) Banderol fee imposed on the VAT base. The recent letter clarifies that the warehousing service fee, before the import of goods mentioned in List numbered (IV) attached to the SCT Law should also be included in the SCT base during the importation, whether such fee is exempt from VAT or not.

The Letter also refers to the TRA’s letter dated 1 March 2022 which states that the aforementioned opinion should be applied for all situations where a tax base during an importation is to be calculated under the procedures mentioned in VAT Law No. 3065.

Based on the 4 March Letter, corporations performing importation should analyze their past and future transactions with respect to their payments which are not included in the SCT and TRT Banderol base. Specifically, if any expenditures and payments related to the following products were taxed or not, they must be added to the SCT and TRT Banderol base.

  • Products included in the list No. IV and A schedule of (II) and (III) whose SCT base is calculated based on VAT base excluding SCT

  • All products subject to TRT Banderol fee

As a result of the analysis, it may be necessary to take action with respect to the company’s current customs practices.

___________________________________

For additional information with respect to this Alert, please contact the following:

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul

Ernst & Young LLP (United States), Turkish Tax Desk, New York

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more