As of 16 April 2020, taxpayers of the Digital Services Tax (DST) can register, file their tax returns and make payments on the Turkish Revenue Administration's website. The website is accessible via the following link: https://digitalservice.gib.gov.tr.

DST overview

DST liability began as of 1 March 2020. The DST tax rate is 7.5% and it is calculated by applying the rate to the tax base (as defined below).

Companies with in-scope revenue from Turkey exceeding TL20 million and with worldwide in-scope revenue of more than €750 million or the TL equivalent in foreign currency are subject to DST.

Taxpayers of the DST are digital service providers and the tax base is the gross revenue generated during a taxation period from services falling within the scope of DST.¹ The taxation period for the DST is a one-month period of the calendar year.

Digital service providers whose revenue, generated from services falling within the scope of the DST, who exceed the local threshold (TL20m) and claim to be exempt from the DST (due to the fact that their worldwide revenue does not exceed €750m), shall 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.

Registration, Filing and Payment

Before filing a DST return for the first time, an application must be made on the following website: https://digitalservice.gib.gov.tr.

The first DST return filing must be made by the last day of April.

The first payment of the DST is also due by the last day of April. The DST payment can be made via the internet address of the Turkish Revenue Administration (www.gib.gov.tr) using one of the following methods:

1. Bank accounts
2. Debit cards (Turkish state banks and all foreign banks)
3. Foreign credit cards

Local time in Turkey is the basis for all tax declarations and tax payments.

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ENDNOTE

¹ See Global Tax Alert, Turkey introduces Digital Services Tax, dated 25 October 2019.

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CONTACTS

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

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul

• Ates Konca
  ates.konca@tr.ey.com
• Gamze Durgun
  gamze.durgun@tr.ey.com

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ATTACHMENT

PDF version of this Tax Alert