January 5, 2023
Turkey implements Accommodation Tax
Accommodation Tax started to be applied as of 1 January 2023 in Turkey.
Accommodation Tax is imposed on:
Accommodation operators are required to collect a 2% accommodation tax either from their guests or agencies over the service fees. The tax is to be paid by declaring it to the Revenue Administration within the following month.
Accommodation Tax was first introduced into the Turkish tax legislation in 2019, but its implementation was postponed until 1 January 2023, largely due to the pandemic.
Following the promulgation of the General Communique on Accommodation Tax Application on 14 December 2022, this tax entered into force on 1 January 2023.
The subject of the Accommodation Tax is basically overnight services provided in accommodation facilities.
There is no restriction in terms of accommodation facilities in the relevant legal regulations. Overnight services provided in all facilities providing accommodation services, regardless of the type, class, quality of the facility, and whether it has a tourism operation certificate and/or a business establishment/operation certificate according to the relevant legislation are taxable.
Accordingly, overnight services offered in hotels, holiday villages, boutique hotels, private accommodation facilities, motels, hostels, apart hotels, thermal facilities, wellness facilities, farmhouses, village houses, and camp sites, among others, are subject to the tax.
All other services such as eating, drinking, activities, entertainment, use of pool, sports, thermal and similar areas, etc. are also subject to the tax if they are sold with overnight services and are provided at the accommodation facility. In this context, all services provided within the scope of the concepts such as bed & breakfast, half pension, full pension, all-inclusive, ultra-all-inclusive and similar are subject to the tax.
Rate and base of tax
The applicable rate is 2%. This tax will be calculated over the service fees falling into the scope of tax.
Accommodation facility operators are subject to the tax. They will calculate and collect the tax either from their guests or travel agencies and will pay it by declaring it to the Revenue Administration within the following month.
The main responsibilities of accommodation facility operators are as follows:
Penalty provisions stated in the Tax Procedural Law are applicable for those who do not comply with the provisions regulating the Accommodation Tax.
In accordance with the legal regulations regarding the Accommodation Tax, if the following cases are determined by the Revenue Administration, unforeseen costs such as tax assessment, delay interest, tax loss penalty or irregularity penalties may be imposed on the taxpayer:
Further legislation or arrangements regarding the Accommodation Tax have not been published yet as of publication of this Alert. Thus, additional legislative information or arrangements are expected to be published to determine the additional details on its application, such as liability establishments and declarations.
For additional information with respect to this Alert, please contact the following:
Kuzey Yeminli Mali Müsavirlik A.S. Istanbul, Turkey